Question: Consumer expenditures on safety are thought to have positive income
Consumer expenditures on safety are thought to have positive income elasticity. For example, as incomes rise, people tend to buy safer cars (larger cars with side air bags), they are more likely to fly on trips rather than drive, they are more likely to get regular health tests, and they are more likely to get medical care for any health problems the tests reveal. Is safety a luxury or a necessity?
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