Equation

Question 1

‘What is the formula for price elasticity of demand (PeD)?’

Answer 1

‘Price Elasticity of Demand (PeD) = (% change in quantity demanded) / (% change in price).’

Question 2

‘What is the formula for income elasticity of demand?’

Answer 2

‘Income Elasticity of Demand = (% change in demand) / (% change in income).’