Income and Cross Elasticities of Demand
Exploring how changes in income and prices of related goods affect demand. Students use YED and CED to classify goods and predict market changes.
About This Topic
Exploring how changes in income and prices of related goods affect demand. Students use YED and CED to classify goods and predict market changes.
Key Questions
- How do we distinguish between normal and inferior goods using YED?
- What does CED tell us about substitutes and complements?
- How do businesses use YED and CED?
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