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 ▸Why does the demand line slope downwards?
What is the difference between perfect competition and imperfect competition?
'What are the disadvantages of economic growth?'
Analyse the effects on the UK economy of a recession in another economy with trade ties.