For Which of the Following Goods Is the Income Elasticity

question 169

Multiple Choice

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

• A)subscriptions to premium movie channels through the local cable television provider
• B)hi-definition DVD players
• C)champagne
• D)housing

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Definitions:

Utility Thinking

An approach that emphasizes making decisions based on the overall happiness or satisfaction derived from the outcomes.

Utilitarianism

A moral theory suggesting that the best action is the one that maximizes overall happiness or pleasure for the greatest number of people.

Quantification

The process of measuring or expressing something as a quantity, especially for the purpose of analysis or comparison.

Primary Tool

The main instrument or device used to accomplish a task or achieve a goal.