I can still remember the days when my father was only earning member of our family. We had a very simple life, we used to shop from local shops, I couldn't even think about branded clothes. We were happy with everyday's rice dal and no of visit to the restaurant was very rare thing.
Suddenly my mom got a job. Now two earning member made the family income doubled. It changed our lifestyle from different angles.
I stopped wearing clothes by local brand or shops and shifted from local shops to pantaloons and shopper stop. Restaurant visit became quite frequent. That means we shifted for luxury. The increment was more than increment of family income.
Income elasticity of demand is +ve .
But it had no effect in our rice dal consumption, the amount was same for that necessity. The demand neither increased nor decreased for these normal goods.
Income elasticity of demand is 0.
After few more years family income increased more and we stopped visiting in normal restaurants instead of star rated resturants. Consumption of such inferior good decreased with increasing income.
Income elasticity of demand is -ve.
Suddenly my mom got a job. Now two earning member made the family income doubled. It changed our lifestyle from different angles.
I stopped wearing clothes by local brand or shops and shifted from local shops to pantaloons and shopper stop. Restaurant visit became quite frequent. That means we shifted for luxury. The increment was more than increment of family income.
Income elasticity of demand is +ve .
But it had no effect in our rice dal consumption, the amount was same for that necessity. The demand neither increased nor decreased for these normal goods.
Income elasticity of demand is 0.
After few more years family income increased more and we stopped visiting in normal restaurants instead of star rated resturants. Consumption of such inferior good decreased with increasing income.
Income elasticity of demand is -ve.
No comments:
Post a Comment