create a supply and demand on this 2. what do you think the elasticity of those types of goods are? (elastic, inelastic, or unitary elastic) in my opinion luxury goods tend to have a more elastic demand because people who are willing and able to pay for them an adjust easliy to any unexpected price changes. 3. based on answer to (2) what should be the impact on both the markets (industries) involved and how will that show up in terms of impacting the demands on the government versus the tax revenue raised