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:

Injunction

A court order requiring an individual to do or cease doing a specific action.

Reformation

A legal process to correct or modify a written agreement or document that inaccurately reflects the parties' intentions due to error or fraud.

Punitive Damages

Financial compensation awarded to a plaintiff to punish the defendant for especially harmful behavior, beyond simple compensation.

American Rule

A legal principle that states each party involved in a lawsuit covers their own attorney fees, regardless of the outcome of the case.