If a 5 percent increase in income leads to a 10 percent increase in quantity demanded for airline travel, then airline travel is
A)a necessity.
B)a substitute for another good.
C)a luxury.
D)an inferior good.

Question

Quizplus · Accepted Answer

The fact that a 5 percent increase in income leads to a 10 percent increase in quantity demanded for airline travel suggests that airline travel is a luxury good. Luxury goods are those whose demand increases more than proportionally with income.

If a 5 Percent Increase in Income Leads to a 10