Income Elasticity of Demand for Professional Haircuts Is Found to Be

question 97

Multiple Choice

Income elasticity of demand for professional haircuts is found to be 1.7.This service is a

• A) normal good and necessity good.
• B) luxury good but not a normal good.
• C) necessity good but not a normal good.
• D) substitute good.
• E) normal good and a luxury good.

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Definitions:

Reciprocity

The practice of exchanging things with others for mutual benefit, especially privileges granted by one country or organization to another.

Ethical Guidelines

Principles designed to guide behavior and decision-making in a moral and responsible way.

Modern

Pertaining to the present or recent times, often associated with advances in technology, thought, or culture.

Bystander Effect

The social psychological theory that individuals are less likely to offer help to a victim when other people are present.