Question

example of the elasticity and definition

Answer 1

Answer:

Examples of income elastic (luxury goods)

Income elastic – means a change in income causes a bigger % change in demand, e.g. Porsche sports car. As income increases, people can spend a higher % of their income on the car. Organic bread. If income increases people may switch to the 'luxury' option of organic bread.

Answer 2

Examples of income elastic (luxury goods)

Income elastic – means a change in income causes a bigger % change in demand, e.g. Porsche sports car. As income increases, people can spend a higher % of their income on the car. Organic bread. If income increases people may switch to the 'luxury' option of organic bread