Yed

Yed or YED may refer to:

Income elasticity of demand

yEd is a freely available, multi-platform, general-purpose diagramming software.

the name of two stars in the constellation Ophiuchus:

Delta Ophiuchi (Yed Prior)
Epsilon Ophiuchi (Yed Posterior)

Delta Ophiuchi (Yed Prior)

Epsilon Ophiuchi (Yed Posterior)

This page contains text from Wikipedia, the Free Encyclopedia - https://wn.com/Yed

Income elasticity of demand

In economics, income elasticity of demand measures the responsiveness of the quantity demanded for a good or service to a change in the income of the people demanding the good, ceteris paribus. It is calculated as the ratio of the percentage change in quantity demanded to the percentage change in income. For example, if in response to a 10% increase in income, the quantity demanded for a good increased by 20%, the income elasticity of demand would be 20%/10% = 2.

Interpretation

A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious substitutes.

A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand. If income elasticity of demand of a commodity is less than 1, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a superior good.

A zero income elasticity of demand occurs when an increase in income is not associated with a change in the demand of a good. These would be sticky goods.

This page contains text from Wikipedia, the Free Encyclopedia - https://wn.com/Income_elasticity_of_demand

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Yed

Income elasticity of demand

Interpretation

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