Economics B A-Level
Necessity versus luxury
What Necessity versus luxury means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Necessity versus luxury
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Reference: Pearson Edexcel
Whether a good is a necessity or a luxury affects its price elasticity of demand, with necessities being more inelastic and luxuries having price elastic demand.
Topics that use Necessity versus luxury
- Price elasticity of demand (PED) (Pearson Edexcel A-Level)
Related terms
- Percentage changes
- Price elastic demand
- Price elasticity of demand
- Price inelastic demand
- Pricing strategies
- Substitutability
- Time periods in economics
- Total revenue
Using Necessity versus luxury in the exam
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