An example of an income elastic good is:
A) popcorn.
B) a movie ticket.
C) a hot dog.
D) a first-class airline ticket.

Question

Quizplus · Accepted Answer

First-class airline tickets are an example of an income elastic good because demand for them tends to increase more than proportionally as consumers' income rises. People with higher incomes are more likely to spend on luxury items or premium services, such as first-class travel, when their income increases.

An Example of an Income Elastic Good Is