For which of the following goods is the income elasticity of demand likely highest?
A)water
B)diamonds
C)hamburgers
D)housing

Name: For which of the following goods is the income elasticity of demand likely highest? A)water B)diamonds C)hamburgers D)housing
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Question

Quizplus · Accepted Answer

Diamonds are considered luxury goods and are associated with higher incomes, so as income increases, consumers are likely to demand even more diamonds, resulting in a higher income elasticity of demand.

For Which of the Following Goods Is the Income Elasticity