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 | |
| \Delta Y | |
| Y_1 | Consumer’s original income - Leaving Cert Economics - Question 9 - 2016
Question 9
The formula for measuring Income Elasticity of Demand (YED) is as follows:
$$\frac{\Delta Q}{\Delta Y} \times \frac{Y_1 + Y_2}{Q_1 + Q_2}$$
Complete the following ... show full transcript
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 | |
| \Delta Y | |
| Y_1 | Consumer’s original income - Leaving Cert Economics - Question 9 - 2016
Step 1
\Delta Q
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Change in quantity demanded of the good.
Step 2
\Delta Y
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Change in the consumer's income.
Step 3
Y_2
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
New income of the consumer.
Step 4
Q_1
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Original quantity demanded of the good.
Join the Leaving Cert students using SimpleStudy...
