yed and xped

Question 1

what is yed

Answer 1

the responsiveness of demand to a change in income

Question 2

what is an inferior good and their yed

Answer 2

a good for which demand increases as incomes fall, its yed is negative

Question 3

what is a normal good and their yed

Answer 3

a good for which its demand increases as incomes rise. yed is positive

Question 4

what is yed for income elastic goods

Answer 4

a change in income leads to a greater than proportional change in demand, yed is less than -1 pr greater than 1

Question 5

what is yed for income inelastic goods

Answer 5

yed is between 0 and -1 or 0 and 1, a chnage in income leads to a less than proportional chnage in demand

Question 6

what is a normal necesity

Answer 6

goods with positive yed but inelastic

Question 7

what is a normal luxury

Answer 7

goods with a positive yed but elastic

Question 8

what is xped

Answer 8

the responsiveness of demand for one good to a change in price of another good

Question 9

xped for substitutes vs compliments

Answer 9

substitutes have positive xped because as price of one falls demand of other falls, compliments are negative because as price of one rises demand for other falls

Question 10

whats the xped for strong and weak subsitites

Answer 10

strong substitutes have a high number whereas weak substitutes have a low number

Question 11

xped for weak and strong compliments . what does it mean if xped 0

Answer 11

strong compliments have ped of less than -1 whereas weak complimnets have ped between 0 and -1. xped of 0 means the goods are unrelated