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Ch. 4 - ElasticityWorksheetSee all chapters

# Income Elasticity of Demand

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Sections
Percentage Change and Price Elasticity of Demand
Elasticity and the Midpoint Method
Price Elasticity of Demand on a Graph
Determinants of Price Elasticity of Demand
Total Revenue Test
Total Revenue Along a Linear Demand Curve
Income Elasticity of Demand
Cross-Price Elasticity of Demand
Price Elasticity of Supply
Price Elasticity of Supply on a Graph
Elasticity Summary

Concept #1: Income Elasticity of Demand

Practice: Johnny Clutch just got a raise from $900 per week to$1100 per week. As a result, he decreases the amount of ramen noodles he buys from seven cartons a week to one carton a week. For Johnny, ramen noodles are:

Practice: Johnny Clutch just got a raise from $950 per week to$1,050 per week. As a result, he increases the number of concerts he attends by five percent. His demand for concerts is:

Practice: A twelve percent increase in consumer income has caused the quantity of orange juice demanded to increase from 24,000 to 26,000. The income elasticity of demand for orange juice is: