Luxury goods typically have a degree of elasticity that can be considered low. This means that the demand for luxury items does not change significantly with a change in price.
Luxury goods are often seen as non-essential items or status symbols. When prices increase, consumers who desire these goods may still purchase them because they associate luxury items with premium quality or prestige. Conversely, when prices decrease, it does not necessarily lead to a dramatic increase in quantity demanded, as consumers may not prioritize purchasing more of these goods just because they are cheaper.
In summary, the demand for luxury goods is relatively inelastic, as consumers with higher disposable incomes are willing to pay the price to maintain their lifestyle and status.