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Luxury products are elastic, in comparison to necessity products which are inelastic. Luxury goods are elastic because for a change in price there is a more than proportionate change in quantity. e.g. If the price of a luxury good increases, less people will purchase the good because it is not necessary in their lives - they can do without it.
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How would you rank the following items from the least elastic (most inelastic) to the most elastic?
The ranking of elasticity from least elastic (most inelastic) to most elastic is as follows: necessity goods, luxury goods, and normal goods.
What is the ranking of the following products in order of elasticity of demand, from the least elastic to the most elastic?
The ranking of the products in order of elasticity of demand, from the least elastic to the most elastic, is as follows: necessity goods, luxury goods, and then substitute goods.
Price elasticity of demand for luxury goods will be?
elastic becoz wen price of the commodity changes , it affects the demand for the commodity .. Demand for a product is sensitive to price changes .. With icrease in price , the demand decreases nd with decrease in price , demand increases ..
Luxury goods like Dom Perignon champagne tend to have elastic demand curves?
correct
What factors tend to make demand curves more price elastic?
Close substitutes, increased income, luxury goods, time. Addiction makes demand less elastic, (inelastic) ex. Cigarettes. As time increases more substitutes become available.
What makes a price elastic?
If a change or increase in price will affect demand. Elastic goods are usually those that the consumer does not NEED to purchase, such as luxury goods. When the producer increases price, demand will usually increase. Inelastic goods are those that the consumer needs to buy no matter what the price is, such as milk or salt. A sale or price increase won't affect the demand at all.
How would you rank the following items from the least elastic (most inelastic) to the most elastic?
The ranking of elasticity from least elastic (most inelastic) to most elastic is as follows: necessity goods, luxury goods, and normal goods.
What is the ranking of the following products in order of elasticity of demand, from the least elastic to the most elastic?
The ranking of the products in order of elasticity of demand, from the least elastic to the most elastic, is as follows: necessity goods, luxury goods, and then substitute goods.
Price elasticity of demand for luxury goods will be?
elastic becoz wen price of the commodity changes , it affects the demand for the commodity .. Demand for a product is sensitive to price changes .. With icrease in price , the demand decreases nd with decrease in price , demand increases ..
Luxury goods like Dom Perignon champagne tend to have elastic demand curves?
correct
What factors tend to make demand curves more price elastic?
Close substitutes, increased income, luxury goods, time. Addiction makes demand less elastic, (inelastic) ex. Cigarettes. As time increases more substitutes become available.
Is a luxury good always considered superior to a normal good in terms of quality and price?
No, a luxury good is not always considered superior to a normal good in terms of quality and price. Luxury goods are typically more expensive and associated with higher quality, but this is not always the case. Quality and price can vary for both luxury and normal goods.
What type of taxes are inheritance and excise taxes on luxury goods?
It is a progressive tax. Because the tax gets higher as you pay high price for the luxury goods.
What is the difference between inelastic and elastic goods?
Elastic goods usually have many substitutes, so changes in price will decrease demand. Inelastic goods, on the other hand, have very few substitutes, so demand isn't generally affected by price change.
What is the rate for Luxury Tax?
The luxury tax is a tax on luxury goods, which are products considered not essential for living. The luxury is levied at different rates depending on the price of the product.
Are elastic or inelastic goods are still in demand even if even if prices rise?
Inelastic goods, such as gas or energy based products will always be in demand. This is owing to the fact that everyone utilizes the generally inexpensive goods. Elastic goods, on the other hand, are considered a luxury item/s, such as a Corvette or designer clothing.
Examples of elastic products?
An elastic product is one that if the price goes up, people will stop buying it. Examples of elastic goods are vacations, DVD's and other material items.
