Answer to Question #187283 in Microeconomics for Don

Question

 for rice by 10%. Calculate her income elasticity of demand for rice using point elasticity metho

Answer 1

Income elasticity of demand is calculated as:

$E_y=\dfrac{\Delta Q}{\Delta Y}\times \dfrac{Y}{Q}$

Or:

$E_y=\dfrac{\%\Delta Q}{\%\Delta Y}$