confusion of luxury good in economics?

T

twmoney_31

New member
Luxury goods, like Dom Perignon champagne, tend to have ______ demand curves


a. elastic


b. Unit Elast


c. Inelastic




If someone knows could they possible give me a quick explanation as well so I understand
 
luxury goods are elastic.
B/c you can make do without them if their price increases or your income falls., e.g. buy cheaper champagne or beer.

Cigarettes are not elastic b/c people are addicted to them.
 
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