For which of the following goods is the income elasticity of demand likely highest?
A)Water
B)Boats
C)Doctor's visits
D)Shoes

Question

Quizplus · Accepted Answer

Boats are considered luxury items, and the demand for luxury items tends to increase more than proportionally as income increases, making their income elasticity of demand higher compared to necessities like water, doctor's visits, and basic clothing items like shoes.

For Which of the Following Goods Is the Income Elasticity