If the Income Elasticity of Demand for Laptops Is 3

question 108

Multiple Choice

If the income elasticity of demand for laptops is 3.5, you know that laptops are a(n) :

• A) substitute good.
• B) inferior good.
• C) luxury good.
• D) necessity good.
• E) complement good.

---

Definitions:

Capital Equipment

Assets used by businesses to produce goods and services, such as machinery, tools, and buildings.

Depreciation

A reduction in the value of an asset over time, often due to wear and tear or obsolescence.

Capital Equipment

Long-lasting tools, machinery, and infrastructure utilized in the production of goods and services.

Inventory Changes

Adjustments in the quantity or value of goods that a company has in stock, which can affect financial and operational performance.