Income elasticity is computed by

A)
ei = (Y2 - Y1 ) / e1
B)
ei = (Y1 - Y2 ) / P1
C)
ei = (Q2 - Q1 ) / P1 ​
D)
ei = ( (Q2 - Q1 ) / Q1 ​) / ( (Y2 - Y1 ) / Y1 ​)

Correct Answer : Option (D) - ei = ( (Q2 - Q1 ) / Q1 ​) / ( (Y2 - Y1 ) / Y1 ​)


Published On : May 18, 2021
Category : Business and Economics