Income elasticity of demand

843 views

Published on

AQA, Aquinas, Economics, ECON1, Markets, Market Failure

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
843
On SlideShare
0
From Embeds
0
Number of Embeds
12
Actions
Shares
0
Downloads
8
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Income elasticity of demand

  1. 1. ECON1 WWW.AQUINASECONOMICSAS.CO.UK @AQUINASECONOMIC Income Elasticity of Demand Answer all the questions below 1. Explain the term Income Elasticity 2. What is the calculation for Income Elasticity of Demand 3. Explain the concepts of Normal and Inferior Goods and how they would relate to Income Elasticity 4. Calculate the following: a. Incomes rise by 10% but demand falls 15% b. Incomes rise by 4.5% and demand rises 12.6% c. Incomes fall by 6.9% and demand falls by 2.4% d. Incomes fall by 19.6% but demand rises 45%

×