Econ1 - Goods Flashcards
1
Q
Inferior
A
increase income, leads to a fall in demand
Negative YED
2
Q
Normal
A
Increase in incomes leads to an increase in demand
Positive YED
3
Q
Luxury
A
increase in income causes a bigger % increase in demand. YED greater than 1.
4
Q
Complementary
A
Used together
Negative XED
5
Q
Substitute
A
Alternative goods
Positive XED
6
Q
Public
A
non-rival and non-excludable
7
Q
Merit
A
Positive externalities
8
Q
Demerit
A
Negative externalities
9
Q
Private
A
have rivalry and excludability
10
Q
Free
A
no opportunity cost
