22 To Love, Honour and Save Money In a survey of caterers and event planners, nearly half of them said that they were seeing declines in wedding spending in response to the economic slowdown; 12 per cent even reported wedding cancellations because of financial concerns.

Source: Time, 2 June 2008 a Based upon this news clip, are wedding events a normal good or inferior good? Explain.

b Are wedding events more a necessity or a luxury?

Would the income elasticity of demand be greater than 1, less than 1, or equal to 1? Explain.