215k views
2 votes
Which economic concept helps explain the changing demand for jewelry

A. Fungibility
B. Elasticity
C. Non-excludability
D. Substitution

User ZarakshR
by
6.4k points

2 Answers

5 votes
Hi!
I believe the answer is A. Fungibility. I hope this helps!
User Sodik
by
6.3k points
6 votes

Answer:

B. Elasticity

Step-by-step explanation:

Lack of elasticity is the economic concept that explains the changes in demand for goods, including luxury goods such as jewelry.

Elasticity is a measure of the sensitivity of demand to price. If the demand is elastic, when the price varies, even if little, the demand will be strongly impacted. When the good is inelastic, the variation in price will little affect the demand. Usually luxury goods like jewelry have inelastic demand. This means that the increase in the price of jewelry usually does not greatly reduce its demand.

User Heejin
by
6.9k points