Some Observations and Ideas About Agriculture, Economics, and Policy
Monday, February 16, 2009
Income Elasticity of Demand...High End Autos
Here is an example of the income (both real and expectations of future) elasticity of demand effects. Note that luxury products such as high end cars take a bigger blow in bad economic times than necessities.
I am the Larry Combest Endowed Chair of Agricultural Competitiveness at Texas Tech University and the Director of the Cotton Economics Research Institute. I specialize in behavioral economics, price analysis, trade and policy. My opinions expressed here are mine and not those of Texas Tech University.