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

Name: Necessities tend to have price inelastic demands,whereas luxuries have price elastic demands.
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Question

Quizplus · Accepted Answer

This statement is true. Necessities such as food, water, and housing have a relatively fixed demand regardless of their price, while luxuries such as high-end clothing or vacations may see a significant decrease in demand when their prices increase.

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