« previous next »

Author Question: Why is the demand for a luxury generally more elastic (or less inelastic) than the demand for a ... (Read 117 times)

Chloeellawright

  • Hero Member
  • *****
  • Posts: 588
on: Jun 29, 2018
Why is the demand for a luxury generally more elastic (or less inelastic) than the demand for a necessity?
 
  What will be an ideal response?

Question 2

Pierre can produce either a combination of 20 bow ties and 30 neckties or a combination of 35 bow ties and 15 neckties. If he now produces 35 bow ties and 15 neckties, what is the opportunity cost of producing an additional 15 neckties?
 
  A) 2 bow ties B) 15 bow ties C) 20 bow ties D) 35 bow ties
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


TINA

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 29, 2018
Answer to Question 1

Demand for a necessity is generally less elastic than demand for a luxury because there are fewer substitutes for a necessity. Because there are more substitutes for a luxury than a necessity, the elasticity of demand for a luxury is larger is than the elasticity of demand for a necessity.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Elastic fibres are made of elastin, one type of structural protein found in the ECM of animal cells Elastic fibres are made of elastin, one type of structural protein found in the ECM of animal cells
Male giraffe mounting a female. Only dominant males are generally able to mate. Male giraffe mounting a female. Only dominant males are generally able to mate.
Classic Supply - Demand Curve Classic Supply - Demand Curve
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
During a period of high power demand, the voltage output of the power company is reduced by ... During a period of high power demand, the voltage output of the power company is reduced by ...
Video: Hip Animation

For a complete list of videos, visit our video library