The income elasticity for cars is high.This is best illustrated by which of the following?

Question

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Income elasticity measures how the quantity demanded of a good changes as consumer income changes. A high income elasticity for cars suggests that as income increases, people are more likely to buy cars. College students buying lower-priced cars indicates they are sensitive to income changes, as they opt for more affordable options when their income is lower.

The Income Elasticity for Cars Is High