For a good that is a luxury, demand
A)tends to be inelastic.
B)tends to be elastic.
C)has unit elasticity.
D)cannot be represented by a demand curve in the usual way.

Question

Quizplus · Accepted Answer

Luxury goods tend to have elastic demand because consumers are more sensitive to price changes. When the price of a luxury good increases, demand decreases significantly, and vice versa, since these goods are not considered necessities.

For a Good That Is a Luxury, Demand