# Elasticity of Income for Commodities

If there has been a 10 percent increase in consumer income between two periods, what was the percentage change in the demand for foreign travel? For tobacco products? For Flour?

Commodity Income Elasticity

Flour -0.36

Cigarettes 0.50

European Cars 1.93

Asian Cars 1.65

https://brainmass.com/business/finance/elasticity-income-commodities-238140

#### Solution Preview

The change in demand is related to price elasticity and change in income by the following formula:

D/I=E

where D=percent change in demand, I=percent change in income, and E=price ...

#### Solution Summary

This solution examines the elasticity of income for commodities.

$2.19