Question

Demand for luxuries is elastic.

• A. True
• B. False

Answer 1

The correct option is A True

True. By elastic demand we mean that the price and other determinants of demand have a major effect on the quantity demanded of the commodity. Demand for luxuries is highly elastic because if the price of a luxury commodity increases the quantity demanded will be not be same, the change in quantity demanded will be more than the change in price and vice versa.