The difference between income and wealth
Income is money you receive regularly, like wages or benefits. Wealth is the total value of everything you own, like property or savings.
Formula
Wealth = Assets − Liabilities
Real World
Elon Musk's annual salary from Tesla has at times been $0, yet his wealth exceeds $200 billion — because wealth is a stock of asset values (shares, property), entirely separate from the income flow he receives.
Exam Focus
Use the words 'flow' for income and 'stock' for wealth explicitly in your answer — examiners reward precise terminology.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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