Demand for a Luxury Item, Such as a Yacht, Is

question 146

Multiple Choice

Demand for a luxury item, such as a yacht, is likely to be

• A) both income and price inelastic.
• B) both income elastic and price elastic.
• C) income elastic and price inelastic.
• D) income inelastic and price elastic.

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Definitions:

Advocating

The act of supporting or arguing in favor of a particular cause, policy, or interest to influence public opinion or policy.

Lobbying Effort

The act of attempting to influence the decisions made by officials in the government, usually by different lobbying groups or individual lobbyists.

Unrestricted

Not limited or constrained; free from conditions or restrictions.

Revenues

The income generated from normal business operations, often from the sale of goods and services to customers.