Loading...

Back to Pricing and Analytics Tools

Income Elasticity of Demand (YED)

Analyze how consumer purchasing power affects demand for your product.

Note: In economics, Y is the standard symbol for Yield (Income).

Consumer Income (Y)

Initial Income ($)

New Income ($)

Product Demand (Q)

Initial Quantity Sold

New Quantity Sold

Income Elasticity (YED)

--

Strategic Classification

Enter values to see the analysis.

Definitions Source:

Normal Good (Luxury): YED > 1. Demand rises faster than income.
Normal Good (Necessity): 0 < YED < 1. Demand rises slower than income.
Inferior Good: YED < 0. Demand falls as income rises.

Reference: Mankiw, N. G. (2020). Principles of Microeconomics (9th ed.). Cengage Learning.

Created by Dr. Koray Cosguner with the help of Gemini 3.0.