The demand for Good A and Good B is price elastic, while the demand for Good C is price inelastic. Based on this information, Good A could be a:
A) luxury, the purchase of Good B could take a large part of a buyer's income, and Good C could have few substitutes.
B) luxury, the purchase of Good B could take a small part of a buyer's income, and Good C could have few substitutes.
C) necessity, the purchase of Good B could take a large part of a buyer's income, and Good C could have few substitutes.
D) necessity, the purchase of Good B could take a small part of a buyer's income, and Good C could have many substitutes.
Correct Answer:
Verified
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