Question : Whats is elasticty of luxury goods demand?
Option 1: Inelastic
Option 2: Elastic
Option 3: Highly elastic
Option 4: Perfectly Inelastic
Correct Answer: Highly elastic
Solution : Luxury goods have high degree of elasticity. Because the commodities are not necessities, the percentage change in demand is greater than the percentage change in price, making them overly sensitive to price changes. Hence option C will be the correct answer.
Question : If a commodity's demand remains constant despite a price increase, then its demand is:
Question : If the price elasticity of demand is less than one, then the demand for the goods is said to be ______.
Question : If the price elasticity of demand for a good is greater than 1, the demand is:
Question : What is the elasticity of demand in the case of "Salt"?
Question : When the price elasticity of demand is less than 1, the demand is:
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