An Income Elasticity Coefficient Greater Than 1

question 95

Short Answer

An income elasticity coefficient greater than 1.0 conveys an ________ product.

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Definitions:

Externalities

Effects of a transaction that affect third parties who did not choose to be involved in the market transaction, which can be either positive or negative.

Nonrivalry

A characteristic of a good where one person's consumption does not diminish the ability of others to consume the same good.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Voluntarily Pay

Refers to making a payment or contribution freely without coercion, typically in contexts where payments are not legally mandated.