tekjuverðteyjanleiki

Tekjuverðteyjanleiki refers to the concept of income elasticity of demand within economics. It measures how sensitive the quantity demanded of a good or service is to a change in consumers' income. Specifically, it is calculated as the percentage change in quantity demanded divided by the percentage change in income. A positive tekjuverðteyjanleiki indicates that as income rises, the demand for the good also rises. These are typically considered normal goods. If tekjuverðteyjanleiki is greater than one, the good is considered a luxury good, meaning demand increases more than proportionally with income. If it is between zero and one, it is a necessity good, where demand increases less than proportionally with income. A negative tekjuverðteyjanleiki signifies an inferior good, where demand decreases as income increases, as consumers switch to more desirable alternatives. Understanding tekjuverðteyjanleiki is crucial for businesses when forecasting demand and for governments when considering taxation policies. It helps differentiate between goods that are essential, discretionary, or those consumed by those with lower incomes.