Quantity Damand Change with change in income

As I talked earlier about "Elasticity Of Demand & IT'S TYPES" in my previous blog.

Let's discuss about INCOME ELASTICITY OF DEMAND & IT'S TYPES.

> Income Elasaticity Of Demand says, ratio of the percentage change in the quantity demand with the percentage change in income.

Ey = Percentage change in quantity demand/Percentage change in income

Percentage change in quantity demand =
New quantity demand (^Q)/ Original quantity demand(Q)

For example:- when income level of particular family increases, that family tend to increase their consumption level and viva-versa. Hence Quantity demand increase or decrease with changes occur in income level.

TYPES

There are 3 types of Income Elasticity Of Demand, Which are Following.

1-- Positive Income Elasticity Of Demand.

3-- Zero Income Elasticity Of Demand.

2-- Negative Income Elasticity Of Demand.