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A major determinant of the demand for a luxury good is___...

A major determinant of the demand for a luxury good is____________?

A.

The price of other goods

B.

The price of the good

C.

Tastes and fashion

D.

The income of consumers

Correct answer is D

Luxury goods are goods whose demand increases as the consumer's 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.