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
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