Unit 1 economics 0.0 / 5 ? EconomicsASEdexcel Created by: Jenna WhiteleyCreated on: 09-05-13 19:40 Cross price elasticity of demand (XED) percentage change of quantity demand of good A over percantage change of price of good B (substitut and complentary goods) 1 of 6 Price elasticity of demand (PED) percentage change of QD over percentage change in price (SNAP) 2 of 6 Income elasticity of demand (YED) Percentage change of QD over percentage change of income (Normal and Inferior goods) 3 of 6 Price elasticity of supply (PES) percentage change of QS over percentage change in price (STAR) 4 of 6 Normal Good have a positive income elasticity of demand. Demand increases as real income of consumer rises 5 of 6 Inferior Good have a negative income elasticity of demand. Demand falls as real income of onsumer rises 6 of 6
Comments
No comments have yet been made