income elasticity of demand
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normal good example
i phone, new tvs , radio, new clothes
income elasticity of demand
income elasticity of demand measure the change in quantity demanded in response to a percentage change in income.
-ve
inferior good
luxury good example
Prada, Gucci, Ferrari , Porche
Inferior good example
cheap clothing, supermarket brands, rice, potato
Inferior good definition
decreases in demand when consumer income rises
normal good definition
demand increases when income increases
luxury good definition
demand strongly increases when income rises
+ve and >1
luxury good
+ ve
normal good