Income elasticity is when a consumer will buy more of a product if their income was to rise. This goes for normal goods and inferior goods

.A good example of a normal good is if I was to get a 50% increase in pay it will cost me to buy 30% more shoes throughout the year. This item is a normal item so increase in consumers income will have a increase in shoes being bought throughout the year to keep up with the demand.

As for inferior goods this has an opposite affect. If the consumers income rises the yearly gross revenue of this good will decrease.

Take frozen dinners for an example. These are brought mostly by people with lower incomes. This is because they are cheap and they have all the ingredients inside the frozen packets and all they have to do is heat it up. If the consumers income rises they will most likely go to the store and buy whole ingredients and make homemade meals that take more time and ingredients.

Do you agree or disagree with this discussion? How do you approach the discussion?