Some texts define a luxury good as a good for which the income elasticity of demand is

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Some texts define a "luxury good" as a good for which the income elasticity of demand is greater than 1. Suppose that a consumer purchases only two goods. Can both goods be luxury goods? Explain.

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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Question Posted: Mar 17, 2016 04:50 AM

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Some texts define a luxury good as a good for which the income elasticity of demand is

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Consider any change in income For the budget constraint to ...View the full answer

Microeconomics

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