Business A-Level
income elasticity
What income elasticity means in Business A-Level, as defined for AQA.
Definition of income elasticity
Check what you remember
Read the wording for your board, then hide it and explain income elasticity in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A measure doing the same job against household earnings, positive for a normal good, above one for a luxury and negative for an inferior good.
Topics that use income elasticity
- Understanding markets and customers (AQA A-Level)
Related terms
- branding and price sensitivity
- confidence intervals
- cost and timeliness
- evidence based decisions
- limits of estimated data
- limits of historic records
- market share arithmetic
- portfolio planning
Using income elasticity in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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