单选题
Marko Tskitishvili, an economist, has been studying the drop in the
price of the average household computer in the U.S. and wonders if computers
should still be considered a luxury good or if it has now become a normal good.
He conducts a survey of 500 people and finds the following:
|
|
1998 |
2005 |
|
Avg．Household Income |
$41000 |
$53000 |
|
Avg．Computers Purchased per Household |
0.42 |
0.57 |
Assume that
1998 is the base date.
Based on the above data, Tskitishvili
would conclude that a computer is a:
- A. luxury good with income elasticity of 1.01.
- B. normal good with income elasticity of 0.84.
- C. luxury good with income elasticity of 1.18.