Question

If a good is inferior than the income elasticity of demand for that good is

Answer 1

In economics, the income elasticity of demand measures the responsiveness of the quantity demanded a good or service to a change in the income of the people demanding the good. It is calculated 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, the quantity demanded a good increased by 20%, the income elasticity of demand would be 20%/10% = 2.