What would happen to the demand for luxuries and necessities if wealth were to be redistributed from the wealthy to the poor?

What would happen to the demand for luxuries and necessities if wealth were to be redistributed from the wealthy to the poor?

 

Answer:

as the wealth is redistributed, then poor will have some money which they use to purchase necessities, while rich might have lesser income which would mean lowering the demand for the luxuries . So overall demand for luxuries would decline and demand for necessities would increase

Asked on February 13, 2018 in economics.
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