Table 5-1

Good
Price Elasticity

of Demand

A 1.9
B 0.8

Refer to Table 5-1. Which of the following is consistent with the elasticities given in Table 5-1?

a. A is a good after an increase in income and B is that same good after a decrease in income.
b. A has fewer substitutes than B.
c. A is a luxury and B is a necessity.
d. A is a good immediately after a price increase and B is that same good three years after the price increase.