If a Good Has an Income Elasticity of 1

question 36

Multiple Choice

If a good has an income elasticity of 1.83,which of the following can be said about it?

• A)It is a normal good,and a necessity.
• B)It is an inferior good,and a necessity.
• C)The good probably has a lot of close substitutes available.
• D)None of these statements is true.

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Definitions:

Personal Care Products

Items intended for personal hygiene and beauty care, such as cosmetics, skincare products, haircare products, and toiletries.

Off-price Retailers

Stores that sell high-quality merchandise at lower prices, often through purchasing overstock items or past seasons' goods.

Generation Z

The demographic cohort following Millennials, typically defined as those born from the mid-1990s to the early 2010s.

Digital Technologies

Electronic tools, systems, devices, and resources that generate, store, or process data.