Table: Elasticity Characteristics $$\begin{array} { l l l }
\hline \text { Good X } & \text { Good Y } & \text { Good Z } \
\hline \text { Few Substitutes } & \text { Many Substitutes } & \text { Few Substitutes } \
\text { Luxury good } & \text { Luxury good } & \text { Necessary good } \
\text { Small part of budget } & \text { Large part of budget } & \text { Small part of budget } \
\hline
\end{array}$$ The table lists the characteristics of three goods. Good ________ is the most inelastic, and Good ________ is the most elastic.
A) X; Y
B) Z; Y
C) X; Z
D) Y; X

Question

Table: Elasticity Characteristics $$\begin{array} { l l l } 
\hline \text { Good X } & \text { Good Y } & \text { Good Z } \
\hline \text { Few Substitutes } & \text { Many Substitutes } & \text { Few Substitutes } \
\text { Luxury good } & \text { Luxury good } & \text { Necessary good } \
\text { Small part of budget } & \text { Large part of budget } & \text { Small part of budget } \
\hline
\end{array}$$ The table lists the characteristics of three goods. Good ________ is the most inelastic, and Good ________ is the most elastic.
A) X; Y
B) Z; Y
C) X; Z
D) Y; X

Quizplus · Accepted Answer

Good Z is the most inelastic because it has few substitutes, is a necessary good, and takes up a small part of the budget. Good Y is the most elastic because it has many substitutes, is a luxury good, and takes up a large part of the budget.

Table: Elasticity Characteristics The Table Lists the Characteristics of Three Goods