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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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