A good with a high income elasticity is generally considered to be
A) an inferior good.
B) a luxury good.
C) a necessity.
D) inexpensive, relative to other goods.

Name: A good with a high income elasticity is generally considered to be A) an inferior good. B) a luxury good. C) a necessity. D) inexpensive, relative to other goods.
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Question

Quizplus · Accepted Answer

A luxury good is a good with a high income elasticity. This means that as income increases, the demand for luxury goods increases more than proportionally.

A Good with a High Income Elasticity Is Generally Considered