Read this article in Hindi to learn about the various degrees of income elasticity of demand for a commodity. (1) इकाई से अधिक (ey > 1) (Elasticity Greater than Unit): इसका अभिप्राय है कि उपभोक्ता अपनी आय वृद्धि से अधिक अनुपात में माँग में वृद्धि करता है । अर्थात्, चित्र 14 (A) में ey > 1 की स्थिति को स्पष्ट [...]
The measure of responsiveness of demand to changes in income is called the income elasticity of demand. Income elasticity of demand measures the degree of responsiveness of quantity of a commodity demanded to a certain change in income of buyers and is defined as the percentage change in quantity demanded divided by the corresponding percentage change in income. The formula [...]
In this article we will discuss about the formula and equation for calculating income elasticity of demand. Also learn about:- 1. Proportion of Income Spent on a Good and Income-Elasticity of Demand 2. Classification of Goods on the Basis of EI 3. Use and Application. If the income of the buyers of a good changes, then, generally, the demand for [...]