Question

when demand for the product increases in the same proportion in Which income increases,income elasticity is called as

Answer 1

Income elasticity is the responsive change in the quantity demanded of a commodity with respective to the change in the income of the people demanding the commodity. There are five categories of the income elasticity, namely, high(demand is more than rise in income), low( demand is less than rise in income), unitary(when demand is same proportion to the change in income), zero( when there is no change in demand while income changes) and negative(for inferior goods). 
The product demand increases in the same proportion to the change in income is unitary income elastic. 

Answer 2

When demand for the product increases in the same proportion in Which income increases,income elasticity is called as Income elasticity of demand.

Income elasticity of demand shows the degree of responsiveness of quantity demanded of a good to a small change in income of consumers.

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