Mind map
income elastic demand
Map content
income elastic demand
YED: is measures the impact on demand of the change in price
Type of good
- Normal goods
- Income is high demand is high
- Income is low demand is low
- Inferior goods
- income is high, demand is low
- Income is low, demand is high
- Normal goods
Formula
- %change in quantity demand / % change in real price
- -x = negative income
- 0 = zero income elasticity
- 0-1 = income inelastic
- 1 = unit income elasticity
- 1+ = income elastic
- %change in quantity demand / % change in real price
Information
- Description
- Mind Map on income elastic demand, created by Jonathan Quevedo on 17/01/2016.
- Created by
- Jonathan Quevedo
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