Calculating Income Elasticity of Demand Values: Easy Economics 3 Step Process

The video tutorial explains how to calculate the income elasticity of demand (YED) using a three-step process. It begins with an introduction to the concept and formula of YED, followed by a detailed explanation of proportionate change in quantity and income. The tutorial then outlines a simple three-step process for calculating YED, which involves determining changes in quantity and income, calculating the top and bottom of the formula, and deriving the elasticity value. Two examples are provided: one with simple numbers and another with more complex numbers, to illustrate the process. The video concludes with a summary of the key points.

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