 | Term | Definition |
| |
PED |
Price Elasticity of Demand |
| |
PES |
Price Elasticity of Supply |
| |
XED |
Cross Elasticity |
| |
YED |
Income Elasticity |
| |
Elasticity |
How sensitive a good is to changes in price, income or other goods. |
| |
Substitute good |
A consumed in the place of another good. eg ipod/ zune |
| |
Complement good |
A good that is usually bought with another good eg ipod / ipod cover |
| |
Normal good |
This good is positively related to income, consumption will rise and fall with income. |
| |
Luxury good |
Consumption of this good increases with a rise in income. |
| |
Inferior good |
A good is described this way if quantity demanded falls when income rises. |
