Economics JAMB

A major determinant of the demand for a luxury goods is?

A. the price of the goods
B. the price of other goods
C. the income of consumers
D. tastes and fashion

Correct Answer:

Option A – the price of the goods

Explanation

Luxury goods are products that are not essential but are highly desired and associated with wealthy or rich people. Most luxury goods are bought because of the high price associated with it and to support self-worth and status.

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