The demand for necessities generally is ________ the demand for luxury goods.
A) as elastic as
B) more elastic than
C) less elastic than
D) flatter than
E) not comparable to

Question

Quizplus · Accepted Answer

The demand for necessities is generally less elastic than the demand for luxury goods. This means that a change in price will lead to a smaller change in the quantity demanded for necessities compared to luxury goods. This is because necessities are often considered essential and consumers are less likely to adjust their demand for them in response to price changes, whereas luxury goods are more discretionary and consumers are more likely to adjust their demand based on price changes.

The Demand for Necessities Generally Is ________ the Demand for Luxury