Luxuries typically have a higher price elasticity of demand compared to necessities. When consumers have more disposable income or when the price of a luxury good increases, the quantity demanded is likely to decrease significantly, as people can forgo or substitute these items more easily. Conversely, if the price of a necessity rises, consumers are less likely to reduce their consumption, making necessities more inelastic. Overall, luxuries are more sensitive to price changes due to their non-essential nature.
Availability of Substitutes Relative Importance Necessities vs. Luxuries Change Over Time
An increase in population
Increase in the population.
bodoh,sial,sengal
Necessities tend to have inelastic demand because consumers will continue to purchase them regardless of price changes, as they are essential for survival or well-being. In contrast, luxuries have more elastic demand, meaning that consumers are more sensitive to price changes and may forgo these items when prices rise. This distinction affects how businesses price their products and how they respond to market fluctuations. Overall, the more essential a good is, the less elastic its demand tends to be.
Availability of Substitutes Relative Importance Necessities vs. Luxuries Change Over Time
Temperture changes will affect the elasticity of rubber.
The elasticity of a product is influenced by several factors, including the availability of substitutes, the proportion of income spent on the product, and the necessity versus luxury nature of the product. If there are many close substitutes available, demand tends to be more elastic. Additionally, products that take up a larger portion of a consumer's budget or are considered luxuries typically exhibit greater elasticity. Other factors include time frame for adjustment and consumer preferences.
The availability of substitutes Habit- Forming Goods 'Luxuries' and 'necessities' The proportion of income which is spent on the commodity The long run and short run.
An increase in population
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Increase in the population.
bodoh,sial,sengal
a higher temperature increases elasticity to fabric as temperature breaks bonds between molecules of the fabric
Elasticity of demand will help managers determine what behaviors affect customer's buying behavior. Price elasticity will tell managers whether they can change the price of products or not.
Necessities tend to have inelastic demand because consumers will continue to purchase them regardless of price changes, as they are essential for survival or well-being. In contrast, luxuries have more elastic demand, meaning that consumers are more sensitive to price changes and may forgo these items when prices rise. This distinction affects how businesses price their products and how they respond to market fluctuations. Overall, the more essential a good is, the less elastic its demand tends to be.
I cannot answer this question.