How can the YED of a Product be Used for Sales Forecasting & Pricing Policy? -Why may Firms choose to Produce a Range of Goods with Different YEDs

-If Changes in Income is Likely, then Sale Levels can be Predicted - the YED of the Good must be known. -If Price is Reduced when Incomes are Expected to Fall, then the Demand Reduction will be Limited - Less Switch over to Inferior Goods -Making a Rang of YED Goods will mean that during a Boom, Demand for High YED will Increase. During a Recession, Goods with Low YED will be High.