Demand is typically elastic for goods that are:
A) necessities.
B) luxuries.
C) last-minute purchases.
D) very cheap.

Question

Quizplus · Accepted Answer

Demand for luxuries is typically elastic because consumers can easily adjust their spending on these items based on changes in price. Necessities, on the other hand, have inelastic demand because consumers need to buy them regardless of price changes. Last-minute purchases and very cheap items often have less sensitivity to price changes, making their demand less elastic compared to luxuries.

Demand Is Typically Elastic for Goods That Are