JAMB Economics 2008 Objective — Question 7

Question 7 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2008 Objective paper, with the correct answer and a full explanation.

A major determinant of the demand for a luxury good is

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

Explanation

Luxury goods are not necessary. They are just additional goods which show status of the consumer. The income level is the major determinant of demand for such goods.

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