Income elasticity of demand may seem complex, but it helps to break it down. We’ll go over the different kinds of goods and touch on cross price elasticity.


Homa Zarghamee is a Professor of Economics in the Department of Economics at Barnard College. She covers our Supply & Demand, Elasticity, Consumer Behavior, and Production & Costs chapters within this course.

She earned both her Ph.D. and Master of Arts (M.A.) in Economics from Cornell University, as well as a Bachelor of Arts (B.A.) in Mathematics and Economics.



Chapters:
0:00 Income elasticity of demand formula
0:42 Normal goods & inferior goods
1:38 Income-elastic or luxury goods
2:08 Changes in quantity demand of a good
2:17 Cross price elasticity


This lesson is excerpted from Outlier’s Intro to Microeconomics course. Learn more about this course and check out our full catalog at https://www.outlier.org.

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