JAMB - Economics (2018 - No. 8)
A major determinant of the demand for a luxury good is____________?
the price of other goods
the price of the good
tastes and fashion
the income of consumers
Explanation
Luxury goods are goods whose demand increases as the consumers' income increases. That means that when consumer income increases, they purchase more of these goods and vice versa. The major determinant of a luxury good is the income of the buyer.