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

3150 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How can we use price elasticity of demand to determine the incidence of a tax on a good?


Buyers in the market for iPhones learn that the price of the Samsung Galaxy has increased. Explain how this would shift demand in the market for iPhones.


Describe how a competitive market would react to excess supply.


Why does a firm with a monopoly set price to be equal to marginal cost?


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