The difference between relative and absolute poverty
Absolute poverty means lacking the basic necessities to survive, like food or shelter. Relative poverty means having much less than most people in your society.
Real World
In the UK, the relative poverty line is set at 60% of median household income; in 2023 this was around £17,000 for a single adult — meaning millions above the absolute poverty line are still classified as relatively poor.
Exam Focus
Distinguish the two measures precisely in 'explain' questions — examiners penalise conflating relative poverty with low income generally.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
How well did you know this?