1.2.5 YED Flashcards
1
Q
what is YED
A
a measure of how much income changes demand
2
Q
what is disposable income
A
amount of income available after all bills are payed, the higher this is the more we can charge
3
Q
how to calculate YED
A
percentage change in quantity demanded / percentage change in income
4
Q
what would a elastic good be classed as in YED
A
a luxury good
5
Q
what would an inelastic good be classed as in YED
A
a necessity
6
Q
how do reduce YED
A
- offer credit
- decrease prices
- gain customer loyalty
- discount and sales
- USP
