For Which of the Following Goods Is the Income Elasticity

question 169

Multiple Choice

For which of the following goods is the income elasticity of demand likely lowest?

• A)subscriptions to premium movie channels through the local cable television provider
• B)hi-definition DVD players
• C)champagne
• D)housing

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Definitions:

Life Insurance Reserves

Financial reserves set aside by life insurance companies to ensure they can meet future policyholder obligations.

Pension Reserves

Pension reserves are funds that are set aside by employers or governments to support future pension benefits for their employees or citizens.

Nonresidential Real Estate

Refers to properties used solely for business purposes or to provide a workspace rather than as a living space, which includes offices, retail spaces, and industrial properties.

Residential Real Estate

Property intended for housing, such as single-family homes, condominiums, and townhouses, as opposed to commercial or industrial property.