If a good is a luxury item that looms large in the household budget,then demand will tend to:

A) be relatively price-elastic.
B) be relatively price-inelastic.
C) have price elasticity equal to 1.
D) be the same as that of a necessity.

Luxury Item

A good or service that is considered non-essential but is desirable as it offers a sense of extravagance or comfort.

Household Budget

An itemized summary of expected income and expenses for a defined period of time, typically for a household.

Price-Elastic

Describes a situation where the demand or supply for a good or service significantly changes in response to price changes.