Edexcel IGCSE Economics 1.1.4.r interpret YED values
Practise YED interpretation questions by classifying products from positive, negative or above-one income elasticity values.
- Syllabus
- First assessment 2019
- Course
- Economics 4EC1
Exam points
- Interpret a positive YED below one as a normal good, not a luxury good.
- Classify luxury goods where demand rises proportionally more than income.
- Identify inferior goods from a negative relationship between income and demand.
1.1.4.r Interpreting income elasticity values question 1
[Maximum number: 1]
When a firm increased its prices, many consumers stopped buying its products.
A product has an income elasticity of demand (YED) of -0.9
Which one of the following best describes the product?
A
A public good
B
A normal good
C
A luxury good
D
An inferior good
D
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