Goods with an income elasticity of demand greater than 1 are called
A)necessities
B)inferior goods
C)normal goods
D)luxuries
E)complements

Name: Goods with an income elasticity of demand greater than 1 are called A)necessities B)inferior goods C)normal goods D)luxuries E)complements
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Question

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Goods with an income elasticity of demand greater than 1 are called luxuries, which means that as income increases, the demand for these goods increases at a proportionally higher rate.

Goods with an Income Elasticity of Demand Greater Than 1