Why Are Prestige Products Often an Exception to the Law

question 46

Multiple Choice

Why are prestige products often an exception to the law of demand?

• A) The demand curve for prestige products slopes downward and to the right.
• B) Increasing the price of prestige products can make them seem more desirable.
• C) Demand for prestige products often is greater than supply.
• D) Prestige products such as diamonds, sapphires, and emeralds are nonrenewable resources.
• E) Customers are more aware of any price changes to prestige products.

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Definitions:

Baby Boomers

A demographic group defined as individuals born between 1946 and 1964, known for being the generation born post-World War II during a marked increase in birth rates.

Purchasing Power

The financial ability to buy products and services, often linked to the amount of money an individual or population has.

Median Purchasing

The median level of expenditure on goods and services by a designated group or area, serving as a central tendency measure of consumption.

Poorest 25 Percent

The segment of a population that falls within the lowest quarter in terms of income level, often highlighted in discussions of economic inequality.