Definition of Income Elasticity: When used without another referent, income elasticity appears to mean 'of consumption'. That is for income I and consumption C:

income elasticity = (I/C)*(dC/dI)

In one paper estimates were shown of .2 to .6 for a random sample of industrialized country middle class people.

For more details see elasticity. (Econterms)

Terms related to Income Elasticity:

• elasticity