{"id":51101,"date":"2024-04-15T23:19:55","date_gmt":"2024-04-15T23:19:55","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=51101"},"modified":"2024-04-15T23:19:55","modified_gmt":"2024-04-15T23:19:55","slug":"what-is-the-nature-of-elasticity-of-demand-for-luxury-item-like-high-class-furnitures","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-nature-of-elasticity-of-demand-for-luxury-item-like-high-class-furnitures\/","title":{"rendered":"What is the nature of elasticity of demand for luxury item like high class furnitures?"},"content":{"rendered":"

[amp_mcq option1=”Unit elastic” option2=”Highly elastic” option3=”Fairly elastic” option4=”Zero elastic” correct=”option2″]<\/p>\n

The correct answer is: B. Highly elastic<\/strong><\/p>\n

The demand for luxury items is highly elastic, meaning that a small change in price will lead to a large change in demand. This is because luxury items are not essential goods, and consumers are more likely to substitute them for other goods if the price increases. For example, if the price of a high-end sofa increases by 10%, consumers may be more likely to buy a lower-end sofa or even forgo buying a sofa altogether.<\/p>\n

The other options are incorrect for the following reasons:<\/p>\n