I have a problem in economics on recession shrinks incomes on normal goods. Please help me in the following question. When a recession shrinks the incomes, then market demand for filet mignon (that is, a luxury) will proportionally: (1) Increase faster than income drops. (2) Increase more gradually than income drops. (3) Drop more rapidly than income drops. (4) Drop more gradually than income drops.
Select the precise answer.