Income Elasticity of Demand (YED)
YED measures how demand changes as income changes, guiding pricing and product decisions. It can help businesses predict demand for luxury and inferior goods during economic change.
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2 min
Revision: Marketing
Marketing is the business function responsible for identifying customer needs and promoting products or services to satisfy those needs profitably. It involves market research, product development, pricing, promotion, and distribution. Effective marketing helps a business attract and retain customers, build brand awareness, and increase sales and market share.
Price Elasticity of Demand (PED)
Price elasticity is about how much people change what they buy when the price changes. If the price goes up and people stop buying a lot of it, we say it’s elastic. If the price changes but people still buy almost the same amount, it’s inelastic. It helps businesses understand how customers might react before they change prices.
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3 min