Necessity item
Inferior good
Luxury item
Comfortable item
✅ The correct answer is C.
If income elasticity for a good is 2, then it is a Luxury item. A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand.
If income elasticity for a good is 2, then it is a Luxury item. A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand.