Figure 6-4
-Refer to Figure 6-4.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 6-4 
-Refer to Figure 6-4.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, meaning that as income increases, the demand for DVDs increases significantly, classifying them as luxury goods.

Figure 6-4 -Refer to Figure 6-4.The Data in the Diagram Indicates That