Which of the following services has a particularly high income elasticity?
A) health care
B) legal advice
C) entertainment
D) education
E) barbershop

Question

Quizplus · Accepted Answer

Entertainment is a service that has a particularly high income elasticity, as people tend to spend more on leisure activities when their income increases. As people have more disposable income, they are more likely to spend it on entertainment such as concerts, movies, and sporting events. This means that the demand for entertainment services tends to increase more rapidly than the overall growth in the economy, making it a service with high income elasticity.

Which of the Following Services Has a Particularly High Income