##  [Income Elasticity of Demand](/index.php/income-elasticity-demand) 

  ##  [Income Elasticity of Demand](https://social.quantumdictionary.io/income-elasticity-demand-0) 

  

 [![Social Sciences Dictionary](/sites/default/files/styles/large/public/2026-01/Social%20Sciences.png.webp?itok=FFG6NW1n)](/index.php/topic-specific-dictionaries/social-sciences)



**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A measure of how quantity demanded changes in response to a percentage change in consumer income, holding other factors constant: YED = (%ΔQ) / (%ΔIncome). The sign and magnitude indicate whether a good is normal (>0), inferior (<0) and whether it is a necessity (<1) or a luxury (>1).