Income Elasticity of Demand (YED)
What Income Elasticity of Demand (YED) means in Economics A-Level, as defined for AQA.
Definitions of Income Elasticity of Demand (YED)
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Reference: AQA
A positive sign denotes a normal good, a negative sign indicates an inferior good, and values above 1 signify luxury goods.
Calculated by dividing the percentage change in quantity demanded by the percentage change in income.
Topics that use Income Elasticity of Demand (YED)
- Price, income and cross elasticities of demand (AQA A-Level)
Related terms
- Cross Elasticity of Demand (XED)
- Price Elasticity of Demand (PED)
- Revenue maximisation
- Business decision-making
- Complementary goods
- Consumer expenditure
- Cross elasticity of demand
- Inferior good
Using Income Elasticity of Demand (YED) in the exam
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