What good is most likely to have an income elasticity of dem

What good is most likely to have an income elasticity of demand equal to 8?

Solution

Answer is a Five star hotel.

Explanation: Luxury spending is having a more income elasticity, therefore, a five-star hotel is most likely to have income elasticity of demand equal to 8.

Other goods like a doctor visit, toilet paper, college coursework are necessities does not have much impact on its demand due to income.

Other product used clothing is having negative income elasticity as it is a inferior goods.