Unit 2.5: Income elasticity of demand (YED)
This lesson focuses on the third type of elasticity in economics - income elasticity of demand or YED. I find that many IB students will confuse this concept with price elasticity of demand. You will need to emphasis to your classes that while a number of products, especially luxury goods and services may be both YED and PED elastic, it is possible for a product to be either YED elastic and PED inelastic or vice...