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Dafna1 [17]
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]3 years ago
7 0

Answer:

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

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.

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