Income elasticity of demand (YED)

[@24434sa]

the fact you took the time to draw those is awe inspiring

[@EnhanceTuition]

Thank you and I’m glad the videos are helpful!

[@sumukhyadav1337]

Good way of covering portion in little time. Thank you for helping

[@ruk7066]

Hi another question 🤐 so when we identify the property of the good (magnitude of relationship) do we consider the absolute value or the value including the sign? -2 and +2 would make a huge difference depending on how we interpret. -2 would turn into a weak relationship if we included the sign but it would be a strong relationship if it were the other way around. Looking forward to your response!

[@ruk7066]

okay i just saw the other comments. so is it okay if i understand it this way- except PED all other elasticities dont consider the absolute values? YED and XED ? thank you in advance :)

[@EnhanceTuition]

PED we consider only absolute values. YED and XED the sign indicates the relationship so it is valuable to us.

[@ruk7066]

@@EnhanceTuition thank u so much for the response :) god bless

[@Ahmad-cu9hp]

Sir can u explain ahem that why is the vacation is normal good like the value is greater than 1 isn't luxury?

[@chool2270]

thank you so much for your class :) I got some confusing part to consult: in the part to distinguish luxury goods and necessity, the absolute value of YED is used. For a certain product, its income and demand curve is fixed.But on different points of the curve, the value of YED is different. so when we distinguish if it's luxury goods or necessity, shouldn't we consider the fixed slope of the curve (whether ∂Q/∂Y>1 or not), rather than the absolute value of YED? looking forward to your reply, much appreciation!

[@EnhanceTuition]

First - we don't use the absolute value of YED. The sign is important. If it is negative it is an inferior good. If the value ranges from 0 to 1, it is considered a normal good. Beyond a value of 1 it is considered a normal good and a luxury good. YED doesn't really tell us about the necessity of a product, that is more related to PED. I think you have confused PED and YED. Check out the other videos on PED.

[@chool2270]

ah, I see. so Much Thanks for your reply

[@hb3549]

Your videos are so helpful, more people need to know about this channel!! You should really try promoting it, make an instagram page, etc so you get more views/subscribers!

[@EnhanceTuition]

Thank you so much. All my time is spent teaching or making these videos, I’ll have to set something up on Instagram soon!

[@becowithsa]

Excellent.

[@EnhanceTuition]

Thank you, I wish you luck as you grow your channel.

[@thisiskhai]

THANK YOU Pls keep uploading ❤