YED and How business can adapt
- Created by: Kinleyyy1997
- Created on: 18-04-21 21:59
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- YED and Next step for Biz
- Elastic Product
- YED is over 1
- Usually Luxuary product
- Biz can market on quality
- UK Economy has slower growth rates of 2%-3%
- Biz can export goods into overseas markets and profit from emerging economies (Growth is over 7%-8%)
- Inelastic Product
- YED is between greater than 0 but less than 1
- Goods that can be standard quality or high quality
- When incomes increase, there may be a slight increase in demand
- Biz can adapt to the economic environment on national pay to adjust marketing accordingly
- Inferrior Good
- YED is below 0
- Biz can focus on branding product as low cost
- Is it price elastic? Biz can profit from marketing low cost
- Less Demand when incomes rise
- External shocks to the economy (COVID) Increasing amount of consimers on gov funding (UC)
- Elastic Product
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