Which of the following types of goods would have a large income elasticity
A)luxuries
B)necessities
C)substitutes
D)complements

Question

Quizplus · Accepted Answer

Luxuries are goods that people can do without or defer purchasing when their income decreases. Conversely, as income increases, the demand for such goods tends to rise sharply. Therefore, luxury goods are highly elastic, meaning their quantity demanded is highly responsive to changes in consumers' incomes.

Which of the Following Types of Goods Would Have a Large