Final answer:
A five-star hotel is likely to have an income elasticity of demand equal to 8 because it is considered a luxury good and its demand greatly increases as consumer income rises.
Step-by-step explanation:
Between a five-star hotel, a doctor's visit, used clothing, and toilet paper, the good that would most likely have an income elasticity of demand equal to 8 is a five-star hotel.
This is because income elasticity of demand measures how much the quantity demanded of a good responds to a change in consumer income. Goods with a high income elasticity of demand, often considered luxury goods, see a greater increase in demand when consumer income rises, which is characteristic of five-star hotels.
In contrast, necessities like toilet paper, essential services like a doctor's visit, and lower-cost items like used clothing tend to have lower income elasticities because their demand changes less in response to income changes.
Incubator facilities continue to remain very popular with start-up businesses for several reasons. First, they often provide strong visibility and walk-in customers, which can be a great advantage for new businesses trying to establish themselves in the market.
Second, they typically offer a range of essential services to entrepreneurs, such as mentorship, networking opportunities, and access to resources, which greatly increase their chances of success. Finally, many incubator facilities also have partnerships with large corporations, which can lead to investment opportunities or even buyouts for the start-ups.