YED Flashcards
1
Q
YED =
A
% change in quantity demanded / % change in income
2
Q
YED < 0
A
inferior good
3
Q
YED = 0
A
inelastic
4
Q
0<YED≤1
A
basic normal good
5
Q
YED > 1
A
luxury good
6
Q
normal necessary products
A
inelastic
low but positive income elasticity
7
Q
normal luxuries
A
inelastic
high and positive income elasticity
8
Q
inferior goods
A
negative YED
real incomes increases so the demand decreases
causes an inward shift of demand curve
