YED | A-Level Economics Notes
These revision notes cover everything you need to know about YED for A-Level Economics. They're designed for students studying AQA A-Level Economics, Edexcel A-Level Economics, and Edexcel International A-Level Economics. Written by Jaisul Naik, UCL Economics graduate and A-Level Economics tutor since 2017.
What is the formula for YED?
YED is % change in demand/ % change in income.
What is the definition of YED?
YED is the responsiveness of demand to a change in income.
What does it mean if YED is between 0 to 1?
YED is between 0 and 1 for normal goods.
For example, if income increased by 10%, demand for bread would not change too much.
What does it mean if YED is more than 1?
YED is between more than 1 for luxury goods.
For example, if income increased by 10%, demand for private taxis would increase as consumers change their preferences.
What does it mean if YED is less than 0?
YED is between less than 0 for inferior goods.
For example, if income increased by 10%, demand for bus fares would fall as consumers change their preferences.
Summary questions
- What is the formula for YED?
- What is the definition of YED?
- What does it mean if YED is between 0 to 1?
- What does it mean if YED is more than 1?
- What does it mean if YED is less than 0?
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