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:

Discernible

Easily recognized or distinguishable; capable of being seen or understood through observation or clear evidence.

Weber's Law

A principle stating that the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus.

Menswear Store

A retail establishment that specializes in selling clothing and accessories specifically designed for men.

Winnipeg

Winnipeg is the capital city of the province of Manitoba in Canada, known for its cultural diversity, historical sites, and as the gateway to the Canadian West.