LS15 - YED Flashcards
1
Q
Normal Goods
A
Demand increases when income rises and decreases when income falls
2
Q
Inferior Goods
A
Demand decreases when income rise and increase when income falls
3
Q
Income Elasticity Of Demand (YED)
A
A measure of the responsive of demand to changes in income
4
Q
YED Equation
A
Percentage Change In Quantity Demanded/Percentage Change In Income
5
Q
Negative YED
A
Inferior goods
6
Q
Positive YED
A
Normal good
7
Q
0
A
Income inelastic and likely to be necessities.
8
Q
YED>1
A
Income elastic and likely to be luxuries.
