What is the formula for income elasticity?
VERIFIED
Mujavid Bukhari
Software Engineer, Ex-Googler and Computer Science at UCL
The formula for income elasticity of demand is: elasticity = % change in quantity demanded / % change in price This is because we are looking for how much a change in price affects (or changes) the quantity demanded. The way I remember this is the abbreviation QPR, Quantity demanded over PRice. My economics teacher joked about alot and said that Queens Park Rangers (QPR) are the best football team π We know that's not true, but we let him believe it π
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