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`IE_D = ( CD )/( CI )`

Enter a value for all fields

The **Income Elasticity of Demand **calculator computes the income elasticity of demand based on the change in quantity of demand and the change in income.

**INSTRUCTIONS**: Enter the following:

- (
**CD**) This is the percent change in the quantity of demand - (
**CI**) This is the percent change in income

**Income Elasticity of Demand (IE _{D}):** The elasticity is returned as a real number. However, this can be converted to a percentage via the pull-down menu.

The formula for Income Elasticity of Demand is:

EI_{D} = CD/CI

where:

- EI
_{D}= Income Elasticity of Demand - CD = Percent change in quantity of demand
- CI = Percent change in income

- Income Elasticity of Demand
- Cross-Price Elasticity of Demand
- Price Elasticity of Demand
- Price Elasticity of Supply
- Total Surplus
- Consumer Surplus
- Producer Surplus
- GDP Growth
- GDP Deflator
- GDP by Income
- GDP Expenditure
- Net Capital Outflow
- Net Exports and Net Capital Outflow
- Dollar Conversion from Different Times
- Unemployment Rate (Friedman and Phelps)
- National Saving
- Domestic Investment
- Unemployment Rate
- Inflation Rate in Year 2 (using CPI)
- Labor Force
- Labor-Force Participation Rate
- Net Exports
- Real Exchange Rate
- Currency Converter
- Midpoint Method for Price Elasticity of Demand
- Income Elasticity of Demand
- Simple Price Elasticity of Demand

The formula for Income Elasticity of Demand is:

IED = CD / CI

where:

- IED is the income elasticity of demand
- CD is the percent change in quantity of demand
- CI is the percent change in income.

The **Income Elasticity of Demand** formula computes the ratio of change in demand over change in consumer income. Income Elasticity of Demand measures how the demand of a product or service changes with changes in consumer income. This is calculated by taking the percentage change in the demand quantity and dividing by the percentage change in income. Note: the Income Elasticity of Demand is rounded to the nearest 1/1,000^{th}.

- Mankiw, N. Gregory. "Chapter 5:Other Demand Elasticities."
*Principles of Macroeconomics*. 6th ed. Mason, OH: Thomson/South-Western, 2004. 97. Print. - “Chapter 7 Consumer Choice and Elasticity.”
*AP Microeconomics 2018*, by Eric R. Dodge, McGraw Hill Education, 2017.