For which of the following goods is the income elasticity of demand likely to be largest?
A)paperback mystery stories
B)best-selling hardcover novels
C)used textbooks
D)children's books
E)leather-bound editions of Shakespeare

Question

Quizplus · Accepted Answer

Luxury goods, like leather-bound editions of Shakespeare, tend to have a higher income elasticity of demand because as income increases, consumers are more likely to purchase these non-essential, high-status items.

For Which of the Following Goods Is the Income Elasticity