Prestige products or services do not follow the ______ curve.

• A. Downward-sloping demand
• B. Demand curve
• C. Inelastic curve
• D. Supply curve

Answer: (A)

Prestige products defy the ordinary link between price and quantity demanded because price itself can signal status and exclusivity. In typical cases, higher prices deter buyers, so the demand curve slopes downward. But for prestige items, higher prices can actually make the product more desirable to those seeking to display wealth or taste, so demand may rise with price in some range. That’s why prestige goods don’t follow the downward-sloping demand curve. The other options don’t capture this specific behavior: the phrase “demand curve” is too general, “inelastic curve” isn’t a standard way to describe this phenomenon, and the supply curve relates to production, not consumer demand behavior.