Discuss the pros and cons of dynamic pricing from an economics perspective

The income elasticity of demand is the responsiveness of the quantity demanded goods to a change in consumer income.

An inferior good is one whose demand drops when people's incomes rise. Cheap goods are associated with a negative income elasticity.

The income elasticity of the demand equation is

Income elasticity of demand = % change in quantity demanded

% change in income

On the majority, this number is positive, meaning a rise in income leads to an increase in quantity demanded.

If one of the goods consumed has a negative income elasticity (Inferior good), the other interest must have a buoyant income demand.