Studies Show That the Income Elasticity of Demand for Wine

question 212

Multiple Choice

Studies show that the income elasticity of demand for wine is 5.03 and the income elasticity of demand for spirits is 1.21.This indicates that

• A)wine and spirits are luxury goods.
• B)wine is a luxury good and spirits are inferior goods.
• C)wine and spirits are highly price elastic.
• D)wine is a luxury good and spirits are necessities.

---

Definitions:

Radiation

The emission of energy as electromagnetic waves or as moving subatomic particles, especially high-energy particles that cause ionization.

X-Rays

Electromagnetic radiation used in medical imaging to view internal structures of the body, particularly bones.

Fetal Exposure

Refers to the exposure of a fetus to substances, conditions, or influences in the womb that can affect development.

Neural Tube

The precursor to the central nervous system in vertebrates, which later develops into the brain and spinal cord during embryonic growth.