Elasticity - YED Flashcards
1
Q
YED- which type of good is negative?
A
Inferior
As Y increases, D decreases (vice versa)
2
Q
YED- what type of good is positive?
A
Normal good
As Y increases, so does D
3
Q
What is the equation for YED?
A
%change in income
4
Q
What is the defenition for YED?
A
Measures the extent to which the demand for a good changes to a response to a change in income
