For a Good That Is a Luxury, Demand

question 117

Multiple Choice

For a good that is a luxury, demand

• A)tends to be inelastic.
• B)tends to be elastic.
• C)has unit elasticity.
• D)cannot be represented by a demand curve in the usual way.

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Definitions:

Finite

Something that has limits or bounds; having a definite end or duration.

Profit Rate

The ratio of profits generated to the amount of capital or investment, indicative of the financial health and efficiency of an entity.

Demand And Supply

Fundamental economic concepts that describe the amount of a product or service available for sale (supply) and the desire of buyers for it (demand), influencing its price.

GDP

Gross Domestic Product; the total value of all goods and services produced over a specific time period within a country's borders, used as a broad measure of economic performance.