$$YED = \frac% \Delta Q_d% \Delta Y$$
11−MPCthe fraction with numerator 1 and denominator 1 minus cap M cap P cap C end-fraction
Crucial for determining abnormal profit vs. loss. Total Revenue (TR) and Average Revenue (AR). 3. Macroeconomic Calculations
Crucial for identifying normal vs. inferior goods.
In XED and YED calculations, the sign determines the economic relationship. A negative XED is not "wrong"; it indicates complementary goods. Dropping the negative sign in XED/YED (as is done in PED) results in a loss of marks for evaluation.