STSTEER

Income Elasticity of Demand

Computing an income elasticity of demand from percentage changes, or using one to predict a change in quantity or income.

Question template

Arjun buys video games every year, and his income elasticity of demand for video games is elasticity. Prices do not change. Use the approximation percentage change in quantity demanded = income elasticity x percentage change in income. Arjun's quantity of video games demanded changed by pct%. By what percentage did Arjun's income change? Round to two decimals.

Use it

from datasets import load_dataset
ds = load_dataset("narunraman/steer_me", "income_elasticity")