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Solution:
If a good is a luxury, its income elasticity of demand is positive and greater than 1.
Income elasticity of demand measures the responsiveness of demand for a good to a change in income.
If the income elasticity of demand for a good is greater than 1, it is considered a luxury good.
This means that as income increases, the percentage increase in quantity demanded is greater than the percentage increase in income.
Correct option is (c)