Suppose Good X Has a Positive Income Elasticity of Demand

question 68

Multiple Choice

Suppose good X has a positive income elasticity of demand.This implies that good X could be (i) a normal good.
(ii) a necessity.
(iii) an inferior good.
(iv)
A luxury.

• A) (i)only
• B) (i)and (ii)only
• C) (i),(ii),and (iv)only
• D) (iii)only

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Definitions:

Status Symbols

Objects or indicators that signify an individual's wealth, prestige, or social class.

Working Class

A socio-economic group primarily consisting of people employed in manual or industrial labor with limited financial resources.

World View

an individual's or group's comprehensive perspective on the world and life, encompassing beliefs, values, and attitudes.

Status Crystallization

The clarity, consistency, and stability of an individual's social status across different contexts.