Learning Contents:                                                               ·          Introduction to Income Elasticity of Demand ·          Measuring Income Elasticity using Proportionate Method Introduction Demand for the commodity is not only influenced by the price. Besides price, other factors such as the price of related goods, the income of the consumer, taste and preferences and expectations about the future price, etc. also influence the demand for the commodity. Therefore, the concept of elasticity of demand can be defined as a degree of change in demand for a commodity as a result of the change in its own price of the commodity, change in the price of related goods i.e. substitute goods and complementary goods, change in income of the consumer, etc. In this post, we will understand how income elasticity of demand is calculated using proportionate method. Income Elasticity of Demand (Proportionate or Percentage Method) Income elasticity of demand tells u