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प्रश्न
State whether the following statement is true or false. Give valid reasons in support of your answer.
Luxury goods often have lower price elasticity of demand.
विकल्प
True
False
उत्तर
The statement 'Luxury Goods often have a lower price elasticity of demand' is False.
Luxuries are the goods which are not essential, rather, they are consumed for leisure or comfort purposes. For example, an air conditioner, branded garments, etc. The demand for such goods is highly responsive to changes in their prices. A rise in the price reduces the demand for them and vice-versa. Thus, such goods have high price elasticity.
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संबंधित प्रश्न
Income elasticity of demand for inferior goods is negative.
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- Luxuries goods have generally elastic demand.
- Goods whose close substitutes are available have inelastic demand.
