Theme 1 - YED Flashcards

1
Q

What is income elasticity of demand

A

YED measures the change in demand in response to a change in consumer income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Formula for YED

A

% change in income
———————————————— x100
% change in quantity demanded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly