YED Flashcards
1
Q
What is discretionary expenditure?
A
Non-essential spending or spending that is not automatic.
2
Q
What is income elastic demand?
A
The percentage change in demand for a product is proportionately greater than the percentage change in income.
3
Q
What is income elasticity of demand?
A
The responsiveness of demand to a change in income.
4
Q
What is income inelastic demand?
A
Where the percentage change in demand is proportionately less than the percentage change in income.
