Which of the following is most likely to have an income elasticity of demand that exceeds 1?
A) tobacco
B) alcoholic beverages
C) airline travel
D) food
E) telephone

Question

Quizplus · Accepted Answer

Airline travel is a discretionary good, and tends to have a high income elasticity of demand, which means that as income rises, demand for this good rises at a greater than proportional rate.

Which of the Following Is Most Likely to Have an Income