Question

Elenticity of demand for luxuries would be​

Answer 1

Explanation:

For example, luxury goods have a high elasticity of demand because they are sensitive to price changes. ... A good or service may be a luxury item, a necessity, or a comfort to a consumer. When a good or service is a luxury or a comfort good, it is highly elastic when compared to a necessary good.

Answer 2

Answer: the answer is

For normal goods, the income elasticity of demand is positive. For luxury goods, the income elasticity of demand is greater than 1. For inferior goods, the income elasticity of demand is negative..........

Luxury goods and services have an income elasticity of demand > +1 i.e. demand rises more than proportionate to a change in income – for example a 8% increase in income might lead to a 10% rise in the demand for new kitchens. The income elasticity of demand in this example is +1.25.

Necessities and medical treatments tend to be relatively inelastic because they are needed for survival, whereas luxury goods, such as cruises and sports cars, tend to be relatively elastic.

Explanation: