Solved UPSC CDS/OTA Question
A solved UPSC CDS/OTA PYQ - decoded step-by-step.
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Q · Market and Types of Goodsmoderate · 45s
A product with high income elasticity (>1) is classified as:
TopicMarket and Types of Goods
Question Typemultiple choice
Difficultymoderate
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
The complete worked solution.
Every step explained - no skipped algebra.
Luxury goods see demand rise faster than income.Meaning: Non-essential desirables.Correct: B is correct.Incorrect: A rises equally; C falls with income; D is price-driven.
Final Answer: Option B - Luxury good