Question: Using alternative values for the Income Elasticity of Demand (E i ) (Negative, Zero, Positive, or strongly Positive [E i > 1.0]) , classify the

  1. Using alternative values for the Income Elasticity of Demand (Ei) (Negative, Zero, Positive, or strongly Positive [Ei > 1.0]), classify the Eifor each of the following products as inferior, normal, luxury or neutral (sticky) goods. Be sure to provide adequate and logical set of economic reasons that supports the chosen classification of the income elasticity of demand.
    1. A two-week vacation in Bermuda
    2. Purchasing a new vehicle
    3. Second-hand clothes from a thrift store
    4. Kitchen and household appliances

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