Because not only rich people consume luxury goods, for most people, if the price is the same, they will choose brand-name products, but once the price rises, they must give up brand-name products and choose other substitutes, so they have great flexibility.

Commodities with similar substitutes are often elastic in demand, because consumers are more likely to switch from this commodity to other commodities. The demand for necessities and luxury goods is often inelastic, while the demand for luxury goods is often elastic. The demand elasticity of a market with a narrow definition is often greater than that of a market with a large scope, because it is easier to find similar substitutes for goods in a small market. ?

Extended data

Taking the sales price of a luxury as a reference point, the part below this price is inelastic, and the part above this price is elastic.

Generally speaking, in the long run, the demand for goods is often more flexible. The relationship between demand curve and demand price elasticity is closely related to the slope of demand curve because demand price elasticity measures the degree of demand response to price: the flatter the demand curve passing through a certain point, the greater the demand price elasticity; The steeper the demand curve passing through a certain point, the smaller the price elasticity of demand.