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 |