She is a library professional, transcriptionist, editor, and fact-checker. Income elasticity of demand refers to the sensitivity of the quantity demanded for a certain good to a change in the real ...

Price is the most common economic factor used when determining elasticity. Other factors include income level and substitute availability. Goods and services are elastic when demand changes for ...

The difference between elasticity and inelasticity of demand is the proportion of this change. If the demand changes by more than the change in price or income, it has elastic demand. If demand ...