Figure 5-1
-Refer to Figure 5-1.The demand curve representing the demand for a luxury good with several close substitutes is
A) A.
B) B.
C) C.
D) D.

Question

Figure 5-1 
-Refer to Figure 5-1.The demand curve representing the demand for a luxury good with several close substitutes is
A) A. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

The demand curve C represents the demand for a luxury good with several close substitutes as it has a relatively elastic demand (flatter slope) compared to the other curves, suggesting that consumers are sensitive to price changes and have alternatives to the product. A luxury good tends to have a higher price and is less essential, making it more likely that consumers will seek alternatives if the price of the product increases.

Figure 5-1 -Refer to Figure 5-1.The Demand Curve Representing the Demand for the Demand