When consumers' incomes increased 6 percent, the quantity of wine bought increased 12 percent. This result means:
A. wine is a necessity
B. wine is an inferior good
C. wine is a luxury
D. the demand for wine is income inelastic

Question

When consumers' incomes increased 6 percent, the quantity of wine bought increased 12 percent. This result means:
A. wine is a necessity
B. wine is an inferior good
C. wine is a luxury
D. the demand for wine is income inelastic

anonymous · Answer

Well I don't know how is this a question of Mathematics but, here goes:
Reasoning: If people have more money, they will buy something more than just necessary items, right?
So, wine must be a luxury.
Answer is choice C. as proven by logical reasoning.

anonymous · Answer

Thank you for your help! I posted it in mathematics because no one was online in the econ group

anonymous · Answer

It is no problem bro, I knew the problem so I just answered it :)

anonymous · Answer

Any chance you could help me out with another problem ?