{"id":50793,"date":"2024-04-15T23:15:27","date_gmt":"2024-04-15T23:15:27","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=50793"},"modified":"2024-04-15T23:15:27","modified_gmt":"2024-04-15T23:15:27","slug":"income-elasticity-of-demand-can-be-measured-with-the-help-of-which-of-the-following-formula","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/income-elasticity-of-demand-can-be-measured-with-the-help-of-which-of-the-following-formula\/","title":{"rendered":"Income elasticity of demand can be measured with the help of which of the following formula?"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9791839651b\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    $$\frac{{Delta q}}{{Delta y}} \times \frac{y}{q}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    $$\frac{{Delta q}}{{Delta y}} \times \frac{q}{y}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    $$\frac{{Delta y}}{{Delta q}} \times \frac{y}{q}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    $$\frac{{Delta y}}{{Delta q}} \times \frac{q}{y}$$                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is A.<\/p>\n<p>Income elasticity of demand is a measure of how responsive the demand for a good or service is to changes in income. It is calculated by dividing the percentage change in the quantity demanded of a good or service by the percentage change in income.<\/p>\n<p>The formula for income elasticity of demand is:<\/p>\n<p>$$\\text{Income elasticity of demand} = \\frac{\\%\\Delta q}{\\%\\Delta y}$$<\/p>\n<p>where:<\/p>\n<ul>\n<li>$\\%\\Delta q$ is the percentage change in the quantity demanded<\/li>\n<li>$\\%\\Delta y$ is the percentage change in income<\/li>\n<\/ul>\n<p>If the income elasticity of demand is positive, then the demand for the good or service is income elastic. This means that the quantity demanded of the good or service increases more than proportionately with an increase in income.<\/p>\n<p>If the income elasticity of demand is negative, then the demand for the good or service is income inelastic. This means that the quantity demanded of the good or service increases less <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> than proportionately with an increase in income.<\/p>\n<p>If the income elasticity of demand <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> is equal to 0, then the demand for the good or service is income unitary elastic. This means that the quantity demanded of the good or service increases proportionately with an increase in income.<\/p>\n<p>In the case of option A, the percentage change in the quantity demanded is divided by the percentage change in income. This is the correct formula for calculating income elasticity of demand.<\/p>\n<p>In the case of option B, the percentage change in the quantity demanded is divided by the quantity demanded. This is not the correct formula for calculating income elasticity of demand.<\/p>\n<p>In the case of option C, the percentage change in income is divided by the percentage change in the quantity demanded. This is not the correct formula for calculating income elasticity of demand.<\/p>\n<p>In the case of option D, the percentage change in income is divided by the quantity demanded. This is not the correct formula for calculating income elasticity of demand.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Income elasticity of demand can be measured with the help of which of the following formula?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/income-elasticity-of-demand-can-be-measured-with-the-help-of-which-of-the-following-formula\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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