Focusing on YED, please explain the type of Goods?

Normal good: 1 or greater than 1, as YED increases, QD for a good increases too.

Superior/ Luxury good: Also a normal good: it makes up a large proportion of consumption e.g. a new car. (Scarce to  buy/ high price)

Inferior Good: Less than 1. As YED rises, QD falls as the consumer has more money to spend on ''better'' alternamtives. E.g. Macdonalds is an inferior good.

VL
Answered by Victoria L. Economics tutor

3098 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Define what is meant by GDP, and explain the limitations of using it as a proxy for economic growth.


What is a Nash Equilibrium?


On the graph related to the firms topic, why does the marginal cost curve meet the average cost curve at its lowest point.


What is the Price Elasticity of Demand?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning