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, the demand for normal goods will also increase. This implies that for normal goods, when the income of consumers rises, their purchasing power improves, leading them to buy more of those goods, hence the positive relationship between income and demand.