You have to decide whether to buy shares in a company selling surfboards or a company selling roller skates. The income elasticity for roller skates is - 0.2 and the income elasticity for surfboards 0.9. Most economists are predicting that consumer income will rise over the next few years. Which company should you invest in and why?

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The Answer of You have to decide whether to buy shares in a company selling surfboards or a company selling roller skates. The income elasticity for roller skates is - 0.2 and the income elasticity for surfboards 0.9. Most economists are predicting that consumer income will rise over the next few years. Which company should you invest in and why?

You Have to Decide Whether to Buy Shares in a Company