passwella.
Menu

JAMB Economics 2008 Question 7

Question 7

Theory of Demand

A major determinant of the demand for a luxury good is

  1. A.the price of the good
  2. B.the price of other goods
  3. C.the income of consumers
  4. D.tastes and fashion
Show the answer and explanation

Answer: C (the income of consumers)

Explanation

People buy luxuries only when their income allows, so demand for a luxury rises and falls strongly with income.