For which of the following goods does the income elasticity of demand most clearly exceed unity?

Question

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Luxury automobiles are considered a luxury good and have an income elasticity of demand that exceeds unity. This means that as income increases, the demand for luxury automobiles increases at a greater proportion than the increase in income. In contrast, public goods like roads and bridges, and food grains, are considered necessities and have an income elasticity of demand that is less than unity. Lifesaving drugs may have a high income elasticity of demand, but it is not as clear as for luxury automobiles.

For Which of the Following Goods Does the Income Elasticity