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Income Elasticity:Income Elasticity of Demand is measure of percentage change in demand for a commodity due to 1% change in income of consumers.

Negative Income Elasticity :

Increase in Income of consumers lead to decrease in the quantity demanded for a commodity.

Example: unbranded items.

so if Income Elasticity for product is -0.5 then its demand will be decreases as Income of consumers increases.

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Q: If the income elasticity of demand for a product is -0.5 then?
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