-Refer to Figure 6-9. The data in the diagram indicates that DVDs are
A) luxury goods.
B) inelastic goods.
C) necessities.
D) both luxury goods and inelastic goods.

Question

-Refer to Figure 6-9. The data in the diagram indicates that DVDs are
A) luxury goods. 
B) inelastic goods. 
C) necessities. 
D) both luxury goods and inelastic goods.

Quizplus · Accepted Answer

The diagram likely shows that DVDs have a high elasticity of demand, meaning that as income increases, the demand for DVDs increases significantly, which is characteristic of luxury goods.