It is most likely for ______________ to have an income elasticity less than 1,and _____________ to have an income elasticity of more than one.
A)coffee;boat
B)boat;car
C)vacation;cell phone
D)filet mignon;chicken

Question

Quizplus · Accepted Answer

Coffee is a necessity for many people, so its income elasticity is likely less than 1. A boat is a luxury item, so its income elasticity is likely more than 1.

It Is Most Likely for ______________ to Have an Income