income elasticity of demand

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