Income elasticity of demand, Managerial Economics

Assignment Help:

Income elasticity of demand

The income elasticity of demand measures the degree of responsiveness of the quantity demanded of a product to changes in income.  Its co-efficient is as follows:

  EY  =   Percentage change in quantity demanded

             Percentage change in income

This we may write as:

EY  =  DQ/Q

           DY/Y

Which can be simplified as:

EY  =  DQ  ·   Y

     =  DY      Q

Where Y  =  Income


Related Discussions:- Income elasticity of demand

Derevatives ., how to solve problems using derivatives ?

how to solve problems using derivatives ?

#, Illustrate the application of economic theory to some business problems

Illustrate the application of economic theory to some business problems

What are the methods of managerial economics, What are the Methods of Manag...

What are the Methods of Managerial Economics The process of managerial economics deals with aspects of economics and tools of analysis, which are employed by business enterpri

Research methods, measurement and scaling techniques in business research

measurement and scaling techniques in business research

What are the essential conditions for perfect completion, What are the esse...

What are the essential conditions for perfect completion? Two essential conditions for perfect competition are as given below: a. Various producers, none of whom have a hug

The spendthrift economy, The Spendthrift Economy This assumes a circul...

The Spendthrift Economy This assumes a circular flow of income in a closed economy with no Government sector and no foreign trade.   It also assumes the existence of two sect

Monetary policy, Monetary Policy Meaning of Economic Growth: The primary...

Monetary Policy Meaning of Economic Growth: The primary function of an whether socialist or capitalist is to satisfy people maximum wants. It must produce consumer goods to make

Unemployment rate to the desired level, Suppose that the present level of i...

Suppose that the present level of income in the economy is $700 billion. It is determined that in order to decrease the unemployment rate to the desired level, it will be essential

Managerial Economics, Calculate point elasticity of demand for demand funct...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd