Income Elasticity of Demand (Grade 11 NSC Matric Economics): Flashcards

How quantity demanded responds to income changes

$\frac{\text{\% change in Qd}}{\text{\% change in income}}$

$< 1$

$> 1$

Negative

Increases slower than income increases

Increases faster than income increases

Decreases (inverse relationship)

$1.36$

$-0.20$