Chinas market for the consumption of goods aimed at enhancing ones appearance or status grew an average

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China’s market for the consumption of goods aimed at enhancing one’s appearance or status grew an average of 15.6 percent a year for the past five years.

Given the information that incomes grew at about 7 percent a year, is the demand for “vanity” goods in China income elastic or income inelastic? Explain.

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Related Book For  answer-question

Foundations Of Economics

ISBN: 9780134486819

8th Edition

Authors: Robin Bade, Michael Parkin

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