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 -.

Question

Thaddeus Vaughn

Business

19 January, 23:39

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 -.

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Dracula · Answer 1

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

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.