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

Related Economics A Level answers

All answers ▸

What is the basic economic problem?


Can you explain quantitative easing?


When answering my essay question, what could be the key evaluative points when talking about fiscal policy?


What is an economic recovery and how is it related to unemployment?