In recent years, the market for gourmet subscription meal kits has expanded rapidly in many high-income countries. Research indicates that consumers highly value the convenience of pre-portioned ingredients and premium organic components. The cross-price elasticity of demand between these subscription meal kits and traditional supermarket ready meals is estimated to be +0.35.
Furthermore, the income elasticity of demand (YED) for these premium gourmet meal kits is +1.6. This reflects their status as a premium lifestyle choice preferred by higher-income earners. As a result, major culinary brands are launching personalized nutritional services to capture further market share.
Using the income elasticity of demand value from the text, explain how a rise in consumer incomes will affect the demand for gourmet-subscription meal kits.
