You would expect a change in the price of a luxury good to bring a more elastic response by buyers than a change in the price of a necessity.

Question

Quizplus · Accepted Answer

Luxury goods are not essential for survival and have more substitutes available, so consumers are more sensitive to price changes, leading to a more elastic demand. In contrast, necessities are goods that consumers must have regardless of price, resulting in a less elastic demand.

You Would Expect a Change in the Price of a Luxury