Income elasticity of demand (YED)
- Created by: CarlosRamos
- Created on: 23-04-17 03:13
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- Income elasticity of demand (YED)
- %change in quantity demanded/%change in income
- Limitations
- Difficult to develop
- Use perceived demand curves
- Out of date in quick changing markets
- Normal goods
- An increase in income... Increases demand
- A decrease in income... Decreases demand
- Inferior goods
- An increase in income... Decreases demand
- A decrease in income... Increases demand
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