M/Q is almost constant because of same change in income in both counties. So, the value of income will do what?

M/Q is almost constant because of the same change in income in both counties. So, the value of income will Change.

In economics, in the income elasticity of demand the 'M' represents the initial income and 'Q' represents the quantity which is demanded by a consumer. Income elasticity shows the changes in purchasing goods in proportionate to varying nature of income (changes in M).

The M/Q is when almost constant means there are fewer changes or changes are taking place in the same percentage in income and quantity purchased.

The income elasticity of demand will lie among zero and one. The elasticity when lies between zero and unitary, then the consumption of necessary goods rises slowly or remains constant, but does not increase as the income level increases and goes high.

• The income elasticity of demand is one, then there is the same proportionate increase in income and quantity demanded. And this fits in the above statement as there are some changes in income and income with proportionate to quantity demanded is also almost constant.
• When income elasticity is zero, then quantity demanded is constant in spite of changes in the level of income.

Therefore, the value of income will Change as the income elasticity of demand will be zero or one or it can be the value in the middle of zero and unitary. But changes are there in the level of income.