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Income Elasticity of Demand:Income elasticity of demand is the responsiveness of demand for a commodity to a change in consumer income.Measurement of Income Elasticity of DemandIncome electricity of demand (YED) is measured as percentage change in demand divided by percentage change in income.
D = the original demandI = the original incomeΔD = change in demand= New demand minus the original demandΔI = change in income= New income minus the original income
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