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question archive For each of the following goods, state whether It is necessity, or an Inferior good

For each of the following goods, state whether It is necessity, or an Inferior good

Subject:EconomicsPrice: Bought3

For each of the following goods, state whether It is necessity, or an Inferior good. Explain your answers. . Vodka. O Normal and luxury. Individuals ter come elasticity Is likely less than 1. O In liquor. cause they will substitute beer for Normal and come elasticity Is likely greater than Normal and necessity. Individuals tend to drink more hard than 1. me rises and Income elasticity Is likely greater . Table salt Normal and necessity. It Is a small portion of peop (Income elasticity is positive but close to zero). Normal and luxury. It is a small portion of people's Income, so Its co Plasticity Is positive and greater than I. Income Normal and luxury. It is a small portion of people's Income, and its consumption doesn't Incre elasticity is positive but close to zerol. ace much with Income (Income mferlor. Individuals tend to consume significantly less salt as their Income rises because they can afford more expensive spices to flavor their food. Furniture. Inferior. Individuals tend to purchase significantly less furniture as their Income Increases because they spend more money on artwork and decor Normal and luxury. Everyone needs some furniture, but as Income goes up, people buy much more and much nicer furniture (Income elasticity Is positive and greater than 1 In the short run). Normal and luxury. Everyone needs some furniture. As Income goes up, people do not usually choose to get rid of the fumiture they already have (Income elasticity Is positive and less than I In the Normal and necessity. Most people have about the same need for fumiture. As Income Increases, people have little reason to replace the furniture they already have (Income elasticity Is positive and greater than 1 In the short runj. d. Perfume. Normal and necessity. As Income Increases, people purchase slightly more perfume than before. However, since everyone uses perfume, the Income elasticity Is positive and greater than 1. Normal and necessity. As Income Increases, people purchase less perfume than before. When people have higher incomes, they do not have to work at Jobs that make them smell bad, so they don't need as much perfume. ON Normal and luxury. Ac Income Increases, p perfume is positive and likely greater than 1. onepeople purchase much more perfume than before. The Income elasticity of )Normal and luxury. As Income Increases, people purchase much more perfume than before. The Income elasticity of perfume is positive and less than L :. Best Normal and necessity. Beer Is the cheapest type of alcohol and tends to be consumed by Individuals with lower Income. As ncome Increases, people purchase more beer. Thus Income elasticity for beer is positive and equal to L Normal and necessity. Beer Is the cheapest type of alcohol and tends to be consumed by Individuals with lower Income. As income Increases, people substitute wine and liquor for beer. Thus Income elasticity for beer is positive and less than 1. Inferior. Beer is the cheapest type of alcohol and tends to be consumed by Individuals with lower Income. As Income ncreases, people substitute wine and liquor for beer. Thus Income elasticity for beer is positive but less then L ON I necessity. Beer Is the cheapest type of alcohol and tends to be consumed by Individuals with lower Income. As Income Increases people purchase more beer. Income elasticity for beer is therefore positive and greater than L Sugar. Normal and necessity. Increases In Income lead to slightly more use of sugar. However, high-income people do not use much more sugar than law-income people, so Income elasticity is positive but less than 1. )Inferior. Increases In Income lead to slightly more use of sugar. However, high-income than low-income people, so Income elasticity Is positive but less than 1. Increases In Income lead to less use of sugar. However, high-income people do not use much less sugar than low- Income people, so Income elasticity Is positive but greater than 1. Normal and necessity. Increases In Income lead to slightly more use of sugar. However, high-income people do not use much more sugar than law-income people, so Income elasticity Is positive and greater than 1.

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