Income Elasticity Of Demand Flashcards
1
Q
Income Elasticity Of Demand
A
Measures the responsiveness of demand after a percentage change In consumer income
2
Q
Income Elasticity Of Demand Formula
A
percentage change in quantity demanded / percentage change in income
3
Q
If YED is greater than one price is…
A
income Elastic
4
Q
If YED is less than one price is…
A
income Inelastic
5
Q
Factors effecting YED (list)
A
Whether the product is a necessity, luxury, or inferior good
Consumer confidence about the economy
Economic growth
