Question

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




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


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


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


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