if-a-good-has-an-income-elasticity-of-demand-of-12-what-can-be-inferred-about-th

Question

If a good has an income elasticity of demand of 1.2, what can be inferred about the nature of the good?

Accepted Answer

It is a normal luxury good.

Answer

It is an inferior good.

Answer

It is a Giffen good.

Answer

It is a necessity.