It is most likely for which of the following to have an income elasticity greater than 1?
A)Deli meat
B)Store brand cola
C)Gold earrings
D)Milk

Question

Quizplus · Accepted Answer

Luxury goods, such as gold earrings, tend to have an income elasticity greater than 1. This means that as income increases, the demand for luxury goods increases at a faster rate than income. Deli meat, store brand cola, and milk are generally considered necessities and have income elasticities of less than 1.

It Is Most Likely for Which of the Following to Have