So kicking off this weekend is undoubtedly the best 21st birthday of the year (confirm geng) and am extremely excited as all the prep work is finally (ok almost there) done~! *yay *cheer!
I just hope it meets everyone's expectations!
Now on a more serious note...
Microeconomics:
Luxury vs Necessity and Elasticity.
If epsilon is greater than 1, then the good is a luxury
If epsilon is less than 1, then the good is a necessity
Going by this, Say if we use the analogy of Air con (A necessity as deemed by ALL OF YOU) vs Clutch ( A luxury as deemed by ALL OF YOU AGAIN). Then a change income (i.e. chippings :D) would obviously force me to demand it on a luxury good rather than a necessity. Because as we all know.. even if income changes.. demand on INELASTIC goods doesn't change as much as the demand ON ELASTIC GOODS.
Also assuming that a clutch is a normal good... then yes.. that change in income will always increase my demand for it! unlike that inferior good called air con.. where a change in income will in no shape or form increase my demand for it.. rather DECREASE my demand for the godamn thing!
True Story. I love you Economics.
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