Question : The elasticity of demand for luxury goods is:

Option 1: Less than one

Option 2: More than one

Option 3: Zero

Option 4: Infinite


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: More than one


Solution : The correct answer is More than one

The elasticity of demand for luxury goods is more than one . It indicates that consumers are highly responsive to changes in the prices of luxury items. A relatively small price increase can lead to a noticeable decrease in the quantity demanded, and a price decrease can result in a significant increase in demand.

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