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.