Homothetic goods are neither necessities nor luxuries, but rather lie on the borderline between them.

Name: Homothetic goods are neither necessities nor luxuries, but rather lie on the borderline between them.
Brand: Quizplus
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Question

Homothetic goods are neither necessities nor luxuries, but rather lie on the borderline between them.​

Quizplus · Accepted Answer

Homothetic goods refer to those which have a constant income elasticity of demand, hence they are not necessities, but they are also not quite luxuries either. They are instead in-between and examples include clothing and food.

Homothetic Goods Are Neither Necessities nor Luxuries, but Rather Lie