Income Elasticity of Demand

examines measurements of how demand for a good can change following a change in income

Category:

Education

Tags:

• economics
• income
• elasticity
• demand
• supply
• business
• marketing
• management
• holden
• alevel
• a-level
• curve
• normal
• inferior

[yesyes673]

Thanks a lot for the help!, i just have 1 question: Why do you use a `Y` as symbol for `Income` and not an `I` ?

[pajholden]

@yesyes673 hello - by convention, I is used for Investment.

[lilcaporista]

You should teach other teachers how to teach lol

[Fjatstrom]

Big fan of your work here to all of us Econ students. Just one question:Income Elasticity of Demand does not change if it is an change of income due to inflation to keep up the consuming, correct? And even if your income goes up(no inflation) but you feel that you don't need to spend all your money on steaks, say your fine with the quantity of steaks you eat before the change of income, won't that affect the elasticity of demand?Doesn't that pretty much say it's not a secure measurement of YED?

[mishterpreshident]

Brilliant instruction, sir! My microeconomics professor uses your videos pretty heavily, and I have to say I've probably come away with more "ah hah" moments thanks to you than I have from my own professor.

[kaylasok]

I am a freshman in college in an intro to economics class and your videos are so so so helpful!! thank you so much!

[mattdyton]

aha thanks so much

[TheTrueBeliever92]

so are inferior goods like substitues?

[CIsabelle0594]

I have shared your videos with, basically my whole grade! I bet all of us will pass our IB exams in 2013!!! Thanks for the efforts! -

[yaba3050]

I love how you say thanks at the end, instead or you're welcome! You are an amazing teacher!

[yugioh7847]

last minute revision anyone

[kayss94]

@yesyes673 'I' is used for investment

[xMATHIEx]

why do you use (y/q) x (change q) / (change y) instead of (%change qd) / (%change income)