An Example of a Good That Likely Has an Income

question 40

Multiple Choice

An example of a good that likely has an income elasticity less than one is _____, while an example of a good that likely has an income elasticity greater than one is _____.

• A) coffee; sailboats
• B) sailboats; cars
• C) vacations; cell phones
• D) filet mignon; chicken

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Definitions:

Consideration

In contract law, it is something of value exchanged between parties as part of an agreement, serving as the reason or inducement to enter into the contract.

Legally Sufficient

A term indicating that an act, document, or process meets all necessary legal requirements and standards.

Legally Sufficient

A term indicating that an element of a contract or transaction meets the necessary legal standards to be upheld in court.

Objectively Worthy

A term used to describe something that is considered to have value or merit based on unbiased criteria or standards.