Asked by
Angel Michalski
on Nov 17, 2024
Verified
In general, demand curves for luxuries tend to be price elastic.
Price Elastic
Relating to the responsiveness of the demand or supply of a good or service to changes in its price.
- Comprehend the variables that affect the price elasticity, including substitute availability and how indispensable the product is.
- Ascertain the variables impacting the flexibility of demand, also categorizing items into necessities and luxuries.
Verified Answer
KN
Learning Objectives
- Comprehend the variables that affect the price elasticity, including substitute availability and how indispensable the product is.
- Ascertain the variables impacting the flexibility of demand, also categorizing items into necessities and luxuries.
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