If a Good Is a Luxury Item That Looms Large

question 186

Multiple Choice

If a good is a luxury item that looms large in the household budget,then demand will tend to:

• A)be relatively price-elastic.
• B)be relatively price-inelastic.
• C)have price elasticity equal to 1.
• D)be the same as that of a necessity.

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Definitions:

Deindividuation

A psychological state where individuals lose self-awareness and a sense of individuality, often resulting in uninhibited or deviant behavior, usually within a group context.

Lost Anonymity

The situation in which an individual's identity becomes known after previously being unknown or unacknowledged.

Prosocial

Acting in ways that tend to benefit others.

Reciprocal Helping

Reciprocal helping is a social behavior where an individual aids another with the expectation that the help will be returned in the future, enhancing survival chances for both.