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State and explain types of income elasticity of demand

      

State and explain types of income elasticity of demand.

  

Answers


John
1. Negative income elasticity of demand - is where demand of a commodity decrease as income increases and demand of a commodity increases as income decreases. Such as for inferior goods.
2. Zero income elasticity of demand - is where demand of a commodity doesn't change as income changes.
3. Income inelastic demand - is where quantity demanded changes is less proportionate to the changes of income of the consumer.
4. Unitary income elasticity of demand - is where change of demand of a commodity is equal to change in consumer's income.
5. Income elastic demand - quantity demanded of a commodity change more than proportionately to change in consumer's income.
5. Positive income elasticity of demand - is where income elasticity of demand is greater than zero and is usually for normal goods.
Jonmhumble answered the question on October 22, 2017 at 19:36


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