Estimates of the income elasticity of demand have been made for a wide variety of goods and services, as shown in Table 3.5. Note that the income elasticities for goods that are often perceived as necessities (e.g. many food itema and housing) are less than 1.0, whercas the income elasticities for items that are usually viewed as luxuries (e.g, European travel) are greater tan 1.0.