Necessities tend to have inelastic demands,whereas luxuries have elastic demands.

Name: Necessities tend to have inelastic demands,whereas luxuries have elastic demands.
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

Necessities such as food and shelter are essential for survival and therefore have a relatively constant demand regardless of price changes. On the other hand, luxuries such as expensive vacations or luxury cars are not essential and consumers may be more sensitive to changes in price, making their demand more elastic.

Necessities Tend to Have Inelastic Demands,whereas Luxuries Have Elastic Demands