This stuff also works wonders for getting rid of people or putting them to
sleep.

"Dave F" wrote:

What he said.
--
Brevity is the soul of wit.


"JMB" wrote:

Basically, it is a measure of the responsiveness in the quantity demanded of
a commodity (education) at any point on the Engel curve due to a change in
income (and assumes that all factors affecting the income demand for
education remain constant). But, IMO, I don't think a definition is really
of much help - perhaps he is looking for the formula?

The OP did not give any cell references for his data, but the income
elasticity can be measured by:

–²Q/Q
_______

–²I/I


or

(Q2 - Q1) I1
________ x ____
(I2 - I1) Q1

which gives you the Income Elasticity Coefficient for education between two
data points (Q being quantity demanded for education and I being Income).

Generally, negative coefficients refer to inferior goods and positive to
normal goods (for that particular income level). Some folks believe it can
be further broken down as:
E< 0 - Inferior Good
0 < E < 1 - Necessity
E 1 - Luxury

but those are just general guidelines.


" wrote:

JoAnn Paules [MVP] wrote:
Elasticity of Expenditures sounds like making your money stretch to fit your expenses. :-)

Or you could take 5 sec to do a google search and get a reasonable
understanding. I found the following definition:

"In economics, elasticity is the ratio of the incremental percentage
change in one variable with respect to an incremental percentage change
in another variable. Elasticity is usually expressed as a positive
number (i.e., an absolute value) when the sign is already clear from
context." See en.wikipedia.org/wiki/Elasticity_(economics) .