XED,YED,PED Flashcards
(7 cards)
1
Q
XED
A
measure the responsiveness of quantity demanded of good A given a change in price of good B
2
Q
XED CALCULATION
A
percentage change in qd of good A/Percentage change in price of good b
3
Q
XED significance
A
provides business info on the nature of goods if they are producing complements or substities
4
Q
value of xed is positive
A
substitutes
5
Q
value of xed is negative
A
two goods are complements
6
Q
YED
A
income elasticity of demand
responsiveness of qty demanded given a change in income
7
Q
PED
A
responsiveness of qd given a change in price
