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Which of the following goods would you expect to have the largest income elasticity of demand quizlet?

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Which product has the largest income elasticity of demand?

diamonds to have the highest income elasticity of demand. Consumers with very high incomes would be likely to demand diamonds, which are classified as a luxury good or a Veblen good. Demand for housing might increase, but not the same way as diamonds.

Which of the following goods would have the most elastic demand?

In general, necessities and medical treatments tend to be inelastic, while luxury goods tend to be most elastic.

What goods have high income elasticity?

Luxury goods usually have Income Elasticity of Demand > 1, which means they are income elastic. This implies that consumer demand is more responsive to a change in income. For example, diamonds are a luxury good that is income elastic.

Which of the following types of goods has the largest positive income elasticity of demand?

The demand for jewelry tends to have highest income elasticity of demand because the individuals will only increase the demand for jewelry when their income increases.

goods expect largest income elasticity demand quizlet

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