Suppose That Good X Is a Luxury and That Good

question 33

Short Answer

Suppose that good X is a luxury and that good Y is a necessity. Which good would you expect to have more price inelastic demand?

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Definitions:

Perceived Purchase Risk

The potential loss or adverse outcomes a consumer believes might occur from buying a product or service.

Functional Risk

The potential for a product or service to fail to perform its intended function, leading to dissatisfaction or harm.

Physical Risk

The potential for bodily harm or health hazards that individuals may face in various activities or environments.

Social Risk

Social risk in consumer behavior refers to the potential for a product or service to adversely affect the user's social standing, image, or relationships with others.