For which of the following medical goods or services is the income elasticity of demand 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 cosmetic service that individuals with higher incomes are more likely to demand. As such, the income elasticity of demand for face-lifts is expected to be higher than for the other medical goods or services listed.

For Which of the Following Medical Goods or Services Is