Edexcel IGCSE Economics 1.1.4.q calculate YED

Practise YED calculation questions by dividing demand change by income change, showing working and rounding to two decimals.

Exam points

Calculate YED by dividing percentage change in quantity demanded by income change.
Show working clearly and round the final YED value to two decimal places.

[Maximum number: 2]

Calculate, to two decimal places, the income elasticity of demand (YED) for a good if income increases by 6.2% and quantity demanded increases by 1.7%. You are advised to show your working.

AO2 2 marks

Award 1 mark for showing correct calculation

$11 \% \div 7 \%(1)$

Award 1 mark for correct income elasticity of demand (YED) = 1.57 (1)

Award 2 marks if YED is correctly calculated as 1.57, even if no calculations are shown

Do not award marks for the formula

(2)

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1.1.4.q Calculating income elasticity of demand question 1