If a good is a luxury, its income elasticity of demand is

1.	If a good is a luxury, its income elasticity of demand is
Answer» Positive and greater than 1 If a good is a LUXURY, its INCOME elasticity of demand is Positive and greater than 1. If income elasticity of demand of a COMMODITY is less than 1, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a superior good.

Answer»

Positive and greater than 1

If a good is a LUXURY, its INCOME elasticity of demand is Positive and greater than 1. If income elasticity of demand of a COMMODITY is less than 1, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a superior good.

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If a good is a luxury, its income elasticity of demand is

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