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Income elasticity of demand is defined as the responsiveness of
Quantity demanded to a change in income
Quantity demanded to a change in price
Price to a change in income
Income to a change in quantity demanded
Income Elasticity of Demand (YED) is defined as the responsiveness of demand when a consumer's income changes. It is defined as the ratio of the change in quantity demand over the change in income. The higher the income elasticity, the more sensitive demand for a good is to changes in income.
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