What does it mean if YED is more than 1?

YED is 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 less than 0 for inferior goods. For example, if income increased by 10%, demand for bus fares would fall as consumers change their preferences.

Y12 Microeconomics Notes

YED | A-Level Economics Notes

Jaisul Naik

12 Feb 2026 • 1 min read

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.