Income Elasticity of Demand Calculator + Guide (YED Formula, Examples & Interpretation)

Income Elasticity of Demand Calculator

About Income Elasticity

Income elasticity of demand measures how quantity demanded responds to changes in income:

EY = (%ΔQd) / (%ΔY)

  • EY > 1: Luxury good
  • 0 < EY ≤ 1: Normal good
  • EY < 0: Inferior good

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