JAMB Economics 2019 Objective — Question 4

Question 4 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2019 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 superior goods that are increasingly demanded at higher income levels; the poor cannot afford them, while the rich, having satisfied basic needs, can choose to buy luxuries. Income of consumers is thus a major determinant.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Economics 2019 Objective More Economics past papers