Are wedding events a normal good or an inferior good

Reference no: EM132113422

Question: To Love, Honour, and Save Money In a survey of caterers and event planners, nearly half of them said that they were seeing declines in wedding spending in response to the economic slowdown; 12% even reported wedding cancellations because of financial concerns.

a. Based upon this news clip, are wedding events a normal good or an inferior good? Explain.

b. Are wedding events more a necessity or a luxury? Would the income elasticity of demand be greater than 1, less than 1, or equal to 1? Explain.

Reference no: EM132113422

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