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Ask the Tutor ACCA BT
Elasticity
PED negative: this is normal: as price goes up, demand goes down. Ostentation-goods might show a positive PED so the more expensive they are, the more you can show off so you buy more.
IED positive: this is normal: as income goes up, demand goes up.
XED negative: as the price of X goes up the demand for A goes down, so they are complements (like petrol and cars)
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