If income doubles and the quantity demanded of good X more than doubles,then good X can be described as a
A)substitute good.
B)complement good.
C)necessity.
D)luxury.

Question

Quizplus · Accepted Answer

If the quantity demanded of good X more than doubles when income doubles, then it can be inferred that good X is a luxury. Luxury goods are those that have a higher income elasticity of demand, which means that a change in income has a greater effect on the quantity demanded. This is in contrast to necessity goods, which have a lower income elasticity of demand and are typically purchased regardless of changes in income.

If Income Doubles and the Quantity Demanded of Good X