Marko Tskitishvili, an economist, has been studying the drop in the price of the average household computer in the U.S. and wonders if computers should still be considered a luxury good or if it has now become a normal good. He conducts a survey of 500 people and finds the following:
Assume that 1998 is the base date. Based on the above data, Tskitishvili would conclude that a computer is a:()
A. luxury good with income elasticity of 1.01.
B. normal good with income elasticity of 0.84.
C. luxury good with income elasticity of 1.18.