A good with income elasticity greater than 1 is typically called a

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Multiple Choice

A good with income elasticity greater than 1 is typically called a

Explanation:
Income elasticity of demand shows how much quantity demanded responds to a change in income. When this elasticity is greater than one, demand rises more than proportionately as income increases, which is the defining feature of a luxury good. Normal goods can have positive elasticity, but only up to one for necessities; luxuries have elasticity above one. Inferior goods have negative elasticity, meaning demand falls as income rises, and Giffen goods are a special, rare case of inferior goods with an upward-sloping demand due to a strong income effect. So a good with income elasticity greater than one is a luxury good.

Income elasticity of demand shows how much quantity demanded responds to a change in income. When this elasticity is greater than one, demand rises more than proportionately as income increases, which is the defining feature of a luxury good. Normal goods can have positive elasticity, but only up to one for necessities; luxuries have elasticity above one. Inferior goods have negative elasticity, meaning demand falls as income rises, and Giffen goods are a special, rare case of inferior goods with an upward-sloping demand due to a strong income effect. So a good with income elasticity greater than one is a luxury good.

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