Income elasticity of demand for luxury goods is usually ________.
greater than one
Luxury goods are those for which demand increases more than proportionally as income rises. Therefore, they have an income elasticity greater than one. This means a 10% increase in income leads to more than a 10% increase in demand.
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Important Questions from Economy
When goods are produced by exploiting natural resources, it is an activity associated with:
A system in which local farmers were allowed to cultivate temporarily within a plantation is known as:
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Which type of farming is practiced in areas of high population pressure on land?
The major economic attribute for comparing countries is their:
