question 14 (1 point)\nwhich of the following types of goods would have a large income elasticity?\ncomplemen…

question 14 (1 point)\nwhich of the following types of goods would have a large income elasticity?\ncomplements\nsubstitutes\nluxuries\nnecessities

question 14 (1 point)\nwhich of the following types of goods would have a large income elasticity?\ncomplements\nsubstitutes\nluxuries\nnecessities

Answer

Brief Explanations:

Income elasticity measures how the quantity demanded of a good responds to a change in income. Luxuries are goods for which demand increases more than proportionally as income rises, resulting in a large income - elasticity. Complements and substitutes relate to price - elasticity of demand with respect to other goods' prices. Necessities have a small income - elasticity as demand does not change much with income changes.

Answer:

C. Luxuries