Asked by
Maldha Ibrahim
on Oct 08, 2024
Verified
Generally speaking,the demand for luxury goods is more price elastic than is the demand for necessities.
Luxury Goods
High-value products that are not necessary for basic needs and are often considered a sign of wealth or status.
Price Elastic
Describes how sensitive the demand for a good is to changes in its price; a high elasticity means demand is greatly affected by price changes.
- Determine the correlation between demand elasticity and the classification of goods into necessities and luxuries.
Verified Answer
BP
Learning Objectives
- Determine the correlation between demand elasticity and the classification of goods into necessities and luxuries.
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