income elasticity of demand is measurement of the responsiveness of

Income elasticity of demand is a measurement of the responsiveness of quantity demanded to a change in income. Income elasticity of demand measures the percentage change in the quantity demanded of a product in response to a percentage change in income. It shows how sensitive the demand for a product is to changes in income. If the income elasticity of demand for a product is positive, it means that as income increases, the quantity demanded of the product also increases. If it is negative, it means that as income increases, the quantity demanded of the product decreases. The higher the income elasticity of demand, the more sensitive the demand for the product is to changes in income.