The sensitivity of changes in quantity of demand as the results of changes in income of the consumers is measured by the income elasticity of demand.
We can state some factors that determine the income elasticity of demand as follows.
Factors that determine the income elasticity of demand
People who earn higher income are less influential than the people who earn lower income by the price changes. So, there is lower income elasticity for high-income people to buy a particular good and there is higher income elasticity for lower-income people.
Share in total expenditure
When the consumer pays a greater share of the income to buy a good, there is higher income elasticity and vice versa.