For the following, decide what kind of good it is depending on the elasticity. You will need to put all the letters that apply, but too many letters will make you loose all your marks (this is to prevent trying to get part marks through guessing). Be sure to put your answer in alphabetical order. So if you think the answer is weak inelastic put BF

A) Elastic B) Inelastic C) Complement D) Substitute E) Strong F) Weak G) Inferior H) Luxury I) Necessity

Scenario: A seller sees that there is a change in incomes for the neighbourhood. Due to a local factory closing down, incomes have decrease by 20%. They calculate the income elasticity of the goods they sell. They find that the good has an income elasticity of 0.5. That the good is Answer.