Figure 6-9

-Refer to Figure 6-9.The data in the diagram indicates that DVDs are
A)luxury goods.
B)inelastic goods.
C)necessities.
D)both luxury goods and inelastic goods.
E)both necessities and inelastic goods.

Question

Figure 6-9
 
-Refer to Figure 6-9.The data in the diagram indicates that DVDs are
A)luxury goods. 
B)inelastic goods. 
C)necessities. 
D)both luxury goods and inelastic goods. 
E)both necessities and inelastic goods.

Quizplus · Accepted Answer

The diagram likely shows that DVDs have a high income elasticity of demand, indicating they are luxury goods.

Figure 6-9 -Refer to Figure 6-9.The Data in the Diagram Indicates That