Question

Demand for luxurious goods is elaltic true or false​

Answer 1

Answer:

• The statement 'Luxury Goods often have a lower price elasticity of demand' is False.

Answer 2

Demand for luxurious goods is inelastic, so the given statement is false.

Explanation:

• The given statement that demand for luxurious goods is elastic is false.
• In fact, luxurious goods are goods that can be afforded only by the people belonging to the rich class. They already have a higher income and the price of luxurious goods are already very high.
• Therefore, even a bit up and down in the price of these goods do not affect their demand by rich people.
• A demand that is not affected is known as inelastic demand.
• Therefore the demand for luxurious goods is inelastic and does not change easily.