For Which of the Following Goods Is the Income Elasticity

question 122

Multiple Choice

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

• A)water
• B)diamonds
• C)hamburgers
• D)housing

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Definitions:

Markdown

A reduction from the original or previous retail price of a product.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Marked Up

Refers to the percentage increase in the price of a good or service over its original cost to achieve a profit.

Marked Down

Refers to a reduction in the selling price of goods or services, typically to clear inventory or to boost sales.