Question

Which factor probably caused the change shown in the graphs?

Answer 1

How does a person’s perception of a good as a necessity or a luxury affect his or her purchase of it?




A. A good that is perceived as a necessity will be purchased even if the price rises.


B. People who have a lot of money will buy goods even if they think they are a luxury.


C. If a good is perceived as a luxury, demand becomes inelastic.


D. A good that is perceived as expensive will no longer be considered a necessity.