(Answered) make a distinction between elastic demnd and inelastic demandmake a distinction between elastic…

➤ Why are necessities usually inelastic while luxuries are elastic?
Necessities are essential so buyers continue purchases when prices rise, producing inelastic demand. Luxuries and items with many close substitutes let consumers delay or switch, creating elastic responses. The income share spent on the good and the time horizon also influence elasticity, with longer periods typically increasing responsiveness.