ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A luxury, like an iPhone.
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demand
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supply
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None of the above
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Detailed explanation-1: -If a good is a luxury, the demand for the good is elastic. Because the good is not a necessity, consumers tend to buy less/more substantially when the price increases/decreases. A luxury good works well with the law of demand, which means the demand curve represents demand in the usual way.
Detailed explanation-2: -Capital goods Was this answer helpful?
Detailed explanation-3: -According to the Giffen good definition, it denotes the non-luxury and inferior products with very little or no substitutes. Some examples of it are wheat, potatoes and Rice.
Detailed explanation-4: -In economics, a luxury good is a good for which demand increases more than proportionally as income rises. Luxury goods are said to have high income elasticity of demand. In other words, as people become wealthier, they will buy more and more of the luxury good.