Income Elasticity of Demand Calculator Tool

Income Elasticity of Demand Calculator

Income Elasticity of Demand Calculator

Parameter Description Example Value
Initial Income The initial level of income before the change. $40,000
New Income The new level of income after the change. $50,000
Initial Quantity Demanded The initial quantity of the good demanded before the change in income. 100 units
New Quantity Demanded The new quantity of the good demanded after the change in income. 120 units
Income Elasticity of Demand The responsiveness of the quantity demanded to a change in income, calculated as \(\frac{(\text{New Quantity Demanded} – \text{Initial Quantity Demanded}) / \text{Initial Quantity Demanded}}{(\text{New Income} – \text{Initial Income}) / \text{Initial Income}}\). 1.5

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