Economy, asked by krishnanandrav6043, 10 months ago

Elasticity of demand of luxury goods is

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Answered by virendrasanjay975

Answer:

A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand. If income elasticity of demand of a commodity is less than 1, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a superior good.

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