Ayushi posted an Question
August 10, 2020 • 23:33 pm 30 points
  • UGC NET
  • Economics

33. the income elasticity of demand for luxury goods is generally : (1 less than one (2) equal to one 3) positive (4} negative (1) 5 b (3 (2) (4

33. The income elasticity of demand for Luxury goods is generally : (1 less than one (2) equal to one 3) positive (4} negative (1) 5 B (3 (2) (4

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    Nidhi taparia Best Answer

    The correct answer is (3). The income elasticity for luxury goods is positive, greater than one in fact. This means that when income rises, consumption of luxury goods may rise more in proportion and when income falls, their consumption also falls greater in proportion.

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