If the income elasticity is greater than one, the commodity is

1.	If the income elasticity is greater than one, the commodity is
Answer» Luxury item If the INCOME ELASTICITY is greater than one, the commodity is Luxury item. Luxury GOODS represent normal goods associated with income elasticities of DEMAND greater than one. Consumers will buy proportionately more of a particular good compared to a percentage change in their income.

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Luxury item

If the INCOME ELASTICITY is greater than one, the commodity is Luxury item. Luxury GOODS represent normal goods associated with income elasticities of DEMAND greater than one. Consumers will buy proportionately more of a particular good compared to a percentage change in their income.

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If the income elasticity is greater than one, the commodity is

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