If a Good Has an Income Elasticity of 1

question 127

Multiple Choice

If a good has an income elasticity of 1.83,then it:

• A) is a normal good, and a necessity.
• B) is an inferior good, and a necessity.
• C) probably has a lot of close substitutes available.
• D) is a luxury.

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Definitions:

Title Transfer

The process of legally changing ownership of property or assets from one person or entity to another.

Identified to the Contract

A legal principle in sales law where specific goods are designated as the subject matter of a sales or lease contract.

Common Carrier

A business or service that offers to transport goods or individuals for a fee and is available to the public under license or authority of a regulatory body.

Contracting Parties

The entities or individuals who enter into a contractual agreement, each undertaking obligations to be fulfilled as per the contract terms.