The formula for measuring Income Elasticity of Demand (YED) is as follows:
$$\frac{\Delta Q}{\Delta Y} \times \frac{Y_1 + Y_2}{Q_1 + Q_2}$$
Complete the following table to indicate what each of the above symbols represent:
| Symbol | Description |
|--------|-------------|
| \Delta Q | Change in quantity demanded of the good - Leaving Cert Economics - Question 9 - 2016
Question 9
The formula for measuring Income Elasticity of Demand (YED) is as follows:
$$\frac{\Delta Q}{\Delta Y} \times \frac{Y_1 + Y_2}{Q_1 + Q_2}$$
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Worked Solution & Example Answer:The formula for measuring Income Elasticity of Demand (YED) is as follows:
$$\frac{\Delta Q}{\Delta Y} \times \frac{Y_1 + Y_2}{Q_1 + Q_2}$$
Complete the following table to indicate what each of the above symbols represent:
| Symbol | Description |
|--------|-------------|
| \Delta Q | Change in quantity demanded of the good - Leaving Cert Economics - Question 9 - 2016
Step 1
\Delta Q
96%
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Answer
Change in quantity demanded of the good.
Step 2
\Delta Y
99%
104 rated
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Answer
Change in the consumer's income.
Step 3
Y_1
96%
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Answer
Original consumer's income.
Step 4
Y_2
98%
120 rated
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Answer
New income of the consumer.
Step 5
Q_1
97%
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Answer
Original quantity demanded of the good.
Step 6
Q_2
97%
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Answer
New quantity demanded of the good.
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