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Q 3) There are 2 goods in the market: tv and luxury vacation (lv) Original income of consumer: 1000 TL, Consumption bundle C (40 lv,

Q 3) There are 2 goods in the market: tv and luxury vacation (lv)

Original income of consumer: 1000 TL, Consumption bundle C (40 lv, 90 tv)After a rise in income, income: 1600 TL, Consumption budle C' ( 80 lv, 120 tv)

Although both of them are normal goods, prove that the luxury vacation is a luxury good and tv is a necessity on the basis of "income elasticity of demand".

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