When the price of a necessity increases, demand is likely to be – because consumers – that product to survive. However, when the

Question

3 years ago

5

When the price of a necessity increases, demand is likely to be – because consumers – that product to survive. However, when the

price of a luxury good increases, consumers may – because the good is not crucial to survival. Thus, the demand would be –.

Business

1 answer:

liraira [26] · Answer 1 · 2022-04-14T21:40:55+03:00

Answer:

When the price of a necessity increases, demand is likely to be constant because consumers need that product to survive. However, when the price of a luxury good increases, consumers may not buy it because the good is not crucial to survival. Thus, the demand would be decreasing.

Explanation:

Changes in prices do not affect the demand for necessary goods in price. Consumers need products to survive. Luxury goods are not a necessity for life. When the price goes up, the demand goes down.