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

2950 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How does a reduction in the interest rate affect aggregate demand in a closed economy?


How can taxes reduce the effect of negative externalities?


Explain with a diagram how a sugar tax affects the market equilibrium for A. coca cola, and for B. bottled water


Equilibrium of supply and demand


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:

© 2026 by IXL Learning