Meaning of “income elasticity of demand” in the English Dictionary


"income elasticity of demand" in Business English

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income elasticity of demandnoun [ U ]

uk us

ECONOMICS the degree to which the number of products bought changes when income changes:

In Japan, the income elasticity of demand for exports is far higher than for imports, suggesting a steadily increasing trade surplus.

(Definition of “income elasticity of demand” from the Cambridge Business English Dictionary © Cambridge University Press)