Question

How does a person’s perception of a good as a necessity or a luxury affect his or her purchase of it? A. If a good is perceived as a luxury, demand becomes inelastic. B. A good that is perceived as a necessity will be purchased even if the price rises. C. A good that is perceived as expensive will no longer be considered a necessity. D. People who have a lot of money will buy goods even if they think they are a luxury.

Answer 1

My bet is on B because its ture, but a is also true. but id say B to be safe, people will still buy it if it rises because it is needed. like water. Its not like 6 bucks per 30 pack here but they still sell out because its needed.

Answer 2

B. A good and services which is used as a necessary items will be sell even after the price of the same commodity rise.

Step-by-step explanation:

People will buy anything if it is a basic need like bread, butter or petrol for their car, no matter how much money it costs. these are basic requirements of every individual like food and gas for cars which every household required no matter how much the price of these commodities rises.

Although people can shift towards substitute goods like if the price of the tea increase people shift towards coffee and the same if the price of the petrol increase then people will shift towards diesel cars.