Income elasticity of demand
Variation of demand for goods with respect to income increase / From Wikipedia, the free encyclopedia
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"YED" redirects here. For Edmonton/Namao Heliport (IATA:YED), see CFB Edmonton.
In economics, the income elasticity of demand (YED) is the responsivenesses of the quantity demanded for a good to a change in consumer income. It is measured as the ratio of the percentage change in quantity demanded to the percentage change in income. For example, if in response to a 10% increase in income, quantity demanded for a good or service were to increase by 20%, the income elasticity of demand would be 20%/10% = 2.0.