2. The income elasticity of demand for luxury goods is typically positive, indicating that as income rises, the demand for luxury goods also increases.(奢侈品的需求收入弹性通常是正数,表示随着收入的增加,奢侈品的需求也会增加。) 3. The cross elasticity between coffee and tea is 0.8, suggesting ...
百度试题 结果1 题目If the cross-price elasticity of demand for two goods is negative, these two good are () A. Luxury goods. B. Necessities. C. Substitutes. D. Complements. 相关知识点: 试题来源: 解析 D 暂无解析 反馈 收藏
When a good is inelastic, there is little change in the quantity of demand even when the price of the good changes. For example, insulin is a highly inelastic product. For people with diabetes who need insulin, the demand is so great that price increases have very little effect on the qu...
Luxury goods have a positiveincome elasticity of demand. As a consumer's income rises, the demand for luxury goods may increase. An accurate AED forluxury itemssuch as an expensive car or jewelry may be difficult to quantify. AED vs. Price Elasticity of Demand (PED) While advertising elastici...
Luxury goods, such as holidays, are more elastic. If the price of flights increases, the demand is likely to fall significantly. Substitutes If the good has several substitutes, such as Android phones instead of iPhones, then the demand is more price elastic. The elasticity can also change ...
Explain briefly why the price elasticity of demand for luxury items of goods and services, along with many substitutes of normal goods and services, tend to have price elasticity demand greater than one (Elastic) as compared to goods a...
Availability of substitutes Many substitutes leads to elastic demand Time horizon(时间范围) Elasticity low in the short term(短期弹性低) Luxury goods(elastic)(奢侈品) vs. necessary goods (inelastic)(必需品) Habit forming goods inelastic(习惯性的商品一般弹性小) (e.g. alcohol(酒精) , cigarettes(...
Luxury goods usually have Income Elasticity of Demand > 1, which means they are income elastic. This implies that consumer demand is more responsive to a change in income. For example, diamonds are a luxury good that is income elastic. ...
Why would the price elasticity of demand for an individual firm's product be greater than the elasticity of the overall product market? What is the difference between long-run and short-run price elasticity? For durable goods, the short-run income elasticity...