Micro 1.2 YED Flashcards
1
Q
What is YED?
A
The responsiveness of demand for a product to a proportionate change in income
2
Q
What is the YED formula?
A
% change of quantity demanded / % change of real income
3
Q
What is the YED of normal goods?
A
positive
4
Q
What is the YED of normal luxury goods?
A
> 1
5
Q
What is the YED of normal necessity goods?
A
0 ~ 1
6
Q
What is the YED of inferior goods?
A
negative
