Complete the following sentence: Income Elasticity of Demand (YED) measures the percentage change in __________ for a good caused by a percentage change in the __________ of the consumer - Leaving Cert Economics - Question 5 - 2006

The statement means that as a consumer’s income increases, their demand for the good will also increase. This indicates a direct relationship between income and demand for normal goods; when income rises, consumers tend to purchase more of these goods, demonstrating that the income elasticity of demand is a positive value.