If the Quantity Demanded for a Good Rises as Income

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. E) both necessities and inelastic goods.

Suppose you have surveyed a few industries and obtained information about the income elasticity of demand for their products.If you expect that the economy is headed for a long recession,you would advise people to look for jobs in an industry with A) a high positive income elasticity coefficient such as 5. B) a low positive income elasticity coefficient such as 0.8. C) a "high" negative income elasticity coefficient such as -4. D) a "low" negative income elasticity coefficient such as -0.2.