If a Good Has an Income Elasticity of Demand Greater

question 42

Multiple Choice

If a good has an income elasticity of demand greater than one,one might classify that good as

• A)a necessity.
• B)a luxury.
• C)unusual.
• D)inelastic.

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Definitions:

Beet Juice

A liquid extracted from beets, known for its nutritional benefits and potential use in food coloring and health drinks.

Refined Sugar

Sugar that has been processed to remove impurities and is typically found in a granulated form suitable for consumption.

Financial Advantage

The benefit gained in financial terms from a particular action or situation, often measured in terms of profit, savings, or net worth.

Practical Capacity

The maximum output that a company can produce in a real-life scenario, taking into account planned maintenance, breaks, and other non-operational activities.