Income Elasticity of Demand Calculator:

Income Elasticity of Demand Calculator

Initial Income (I1): New Income (I2): Initial Quantity Demanded (Q1): New Quantity Demanded (Q2):

Price Elasticity of Demand Calculator:

Price Elasticity of Demand Calculator

Initial Price (P1): New Price (P2): Initial Quantity Demanded (Q1): New Quantity Demanded (Q2):

A simple way to check your PED coefficient

This video explains how to conduct a check on your Price Elasticity of Demand calculations. 

It is not intended as an alternative to using the appropriate formula, but serves as a simple way to check the answer you get.

National Cinema Day and Price Elasticity of Demand

Cinemas in Ireland are gearing up for an exciting event this weekend – National Cinema Day, happening on Saturday, September 2. During this special day, moviegoers can buy tickets for a mere €4 at participating cinemas across the country. 

Last year's National Cinema Day saw a staggering 200,000 admissions, making it the most significant day for cinema attendance in the country. Nearly all cinemas in Ireland, approximately 99%, will be part of this initiative, offering a diverse selection of new and recent releases for audiences to enjoy. Ireland boasts the highest screen density per capita in Europe, with an average of one cinema screen for every 10,000 people. 

Price elasticity of demand is a key economic concept closely related to this story. In this case, the significant price reduction to €4 for cinema tickets on National Cinema Day is likely to result in a notable increase in the quantity demanded. Moviegoers who might have been deterred by regular ticket prices are more inclined to attend cinemas on this special occasion due to the lower cost. The elasticity of demand measures how responsive the quantity demanded is to changes in price, and in this scenario, it is expected to be elastic, indicating a substantial increase in attendance as a result of the price reduction. This demonstrates the dynamic relationship between price and consumer behaviour in the context of cinema ticket sales.

The Income Effect

This video explains the effect of an increase in your income on your spending habits and how that income effect determines whether the goods bought are normal or inferior.

Elasticity of Demand

The video below explains the calculation of Elasticity of Demand. The calculations are quite straightforward, however, you may like to use my Elasticity Calculator to check your work (you can download this directly from me in class).