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

2851 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Can you explain the difference between RPI and CPI inflation?


Explain why an increase in labour productivity is likely to reduce the deficit on the current account of the balance of payments.


Explain opportunity cost


How would you go about calculating inflation using CPI (consumer price index)


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:

© 2025 by IXL Learning