Income/Price Elasticity of Demand
This calculator can solve for any of the 5 aspects of the income/price elasticity of demand formula which is denoted below as:
Income elasticity of Demand = (Starting Income Amount * Change in Quantity Demanded) / (Starting Quantity Demanded * Change in Income Earned)
EXAMPLE: You currently earn 8 dollars an hour. At this salary, you consume 6 dozen eggs. You get a raise. You now make 12 dollars per hour. At this salary, you consume 12 dozen eggs. Calculate the income elasticity of demand.
First, Press income elasticity of demand and enter 6 for start quantity, 12 for end quantity, 8 for start income, and 12 for end income and press Calculate. Your answer is 2.00.
Whether you are calculating income or price, check the button that applies to what unit of change you are dealing with.