3.2.3 Flashcards
1
Q
unemployment
A
a situation where someone who is able to work is not able to get a job but would like to be in full time employment
2
Q
what happens when employment levels rise?
A
consumers have more income to spend and this leads to higher sales
3
Q
what does it mean if a product or service is income elastic?
A
if the demand for it increases as people’s income changes
4
Q
what is an example of an income elastic product or service?
A
luxury holidays
5
Q
what does it mean if a product or service is income inelastic?
A
if the demand for it doesn’t change very much as people’s income changes
6
Q
what is an example of an income inelastic product or service?
A
loaf of bread
