What would be nature of elasticity of demand for luxury goods…....?
Answers
Answered by
8
Answer:
Luxury goods usually have Income Elasticity of Demand > 1, which means they are income elastic. This implies that consumer demand is more responsive to a change in income. For example, diamonds are a luxury good that is income elastic.
Hope that this answer helps you...
Answered by
0
The nature of elasticity of demand for luxury goods is more than one.
- Luxury products are those whose demand outpaces increases in consumer wealth.
- When people's income rises, they demand more.
- They are often considered to be at the top in terms of quality and price, while not always having a high-quality connotation.
- Because the proportionate change in the amount requested of luxury goods is greater than the proportionate change in the price of luxury products, the elasticity of demand for luxury goods is greater than one.
Similar questions