If you think good wine is a luxury, then your demand for wine will be:
A) elastic
B) inelastic
C) unit elastic
D) strong

Question

Quizplus · Accepted Answer

If one thinks that good wine is a luxury, their demand for wine is likely to be elastic, meaning that they are more price-sensitive and a change in price may significantly impact their consumption. They may be willing to forgo purchasing wine altogether or switch to a different brand or quality if the price becomes too high.

If You Think Good Wine Is a Luxury, Then Your