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Based on your knowledge on income elasticity of demand, normal good and inferior good, discuss the...

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Economics

Based on your knowledge on income elasticity of demand, normalgood and inferior good, discuss the demand for luxury cars andbread (khubs) before February 2020 and after February 2020. Giventoday’s economic situation, would you advice the government tobuild more luxury car manufacturing plants or build green houses toproduce food?

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Income elasticity refers to the responsiveness of demand for a good by a consumer due to change in income Comparing luxury goods and normal goods like bread which is a necessity luxury goods tend to have    See Answer
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