For which of the following medical goods or services is the income elasticity of demand likely to be largest?
A)emergency services after a car accident
B)measles shots
C)physical examinations for life insurance applications
D)medical tests to diagnose specific symptoms
E)face-lifts

Question

Quizplus · Accepted Answer

Face-lifts are a luxury medical service that is not considered necessary for survival or health improvement, and therefore, are likely to have the highest income elasticity of demand. As people's incomes increase, they may be more willing to spend money on cosmetic procedures such as face-lifts.

For Which of the Following Medical Goods or Services Is