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Business_A-level_Edexcel

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  1. 1-marketing-and-people

    1-1-meeting-customer-needs
    3 主题
  2. 1-2-market
    5 主题
  3. 1-3-marketing-mix-and-strategy
    5 主题
  4. 1-4-managing-people
    5 主题
  5. 1-5-entrepreneurs-and-leaders
    6 主题
  6. 2-managing-business-activities
    2-1-raising-finance
    4 主题
  7. 2-2-financial-planning
    4 主题
  8. 2-3-managing-finance
    3 主题
  9. 2-4-resource-management
    4 主题
  10. 2-5-external-influences
    3 主题
  11. 3-business-decisions-and-strategy
    3-1-business-objectives-and-strategy
    4 主题
  12. 3-2-business-growth
    4 主题
  13. 3-3-decision-making-techniques
    4 主题
  14. 3-4-influences-on-business-decisions
    4 主题
  15. 3-5-assessing-competitiveness
    3 主题
  16. 3-6-managing-change
    3 主题
  17. 4-global-business
    4-1-globalisation
    5 主题
  18. 4-2-global-markets-and-business-expansion
    5 主题
  19. 4-3-global-marketing
    3 主题
  20. 4-4-global-industries-and-multinational-corporations
    3 主题
  21. 5-exam-technique
    5-1-the-exam-papers
    4 主题
  22. 5-2-business-studies-skills
    1 主题
  23. 5-3-structuring-your-responses
    5 主题
  24. 6-pre-release-preparation
    2025-pre-release-music-industry
    9 主题
  1. Business_A-level_Edexcel
  2. 1-2-market
  3. 1-2-5-income-elasticity-of-demand-yed
课 2, 主题 5
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1-2-5-income-elasticity-of-demand-yed

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Definition and calculation of income elasticity of demand

  • Changes in income result in changes to the demand for products

    • Businesses are interested in how much the quantity demanded (QD) will change for different products

  • The income elasticity of demand (YED) reveals how responsive the change in QD is to a change in income

Calculation

  • YED can be calculated using the following formula:

YED space equals space fraction numerator percent sign space change space in space quantity space demanded over denominator percent sign space change space in space income end fraction

Worked Example

An individual’s income falls from £450 per week to £405 per week. As a result, their demand for takeaway meals falls from five per week to three per week.

Calculate the YED for takeaway meals.

[4]

Step 1: State the YED formula:

YED space equals space fraction numerator percent sign space change space in space QD over denominator percent sign space change space in space straight Y end fraction [1]

Step 2: Calculate the % change in QD:

percent sign space change space in space QD space equals space fraction numerator 5 space minus space 3 over denominator 5 end fraction space cross times space 100 equals space minus 40 percent sign [1]

Step 3: Calculate the % change in Y:

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