Income Elasticity Of Demand Calculator

In Economics, income elasticity of demand is the measure of demand for goods relative to the changes in the income, while all other affecting factors remain the same. Estimate here the IEoD for change in quantity and income using this income elasticity of demand calculator.

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In Economics, income elasticity of demand is the measure of demand for goods relative to the changes in the income, while all other affecting factors remain the same. Estimate here the IEoD for change in quantity and income using this income elasticity of demand calculator.

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Formula:

% Change in QD = [QD(NEW) - QD(OLD)] / QD(OLD) % Change in Income = [Income(NEW) - Income(OLD)] / Income(OLD) IEoD = (% Change in QD) / (% Change in Income) Where, QD = Quantity Demanded IEoD = Income Elasticity of Demand

Income elasticity of demand:: It measures how responsive the demand for a quantity based on the change in the income or affordability range of people. It is estimated as the ratio of the percentage change in quantity demanded to the percentage change in income.

Factors influencing the elasticity: The factors like price, income level and availability of substitutes influence the elasticity. One factor that can affect demand elasticity of a goods or service is its price level. For example, the change in the price level for a branded mobile phone can cause a substantial change in the quantity demanded.

Use this income elasticity of demand calculator to calculate the elasticity in different currency units like Dollar, Rupee, Cent, Pound etc.

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