For which of the following goods is the income elasticity of demand likely lowest?
A)subscriptions to premium movie channels through the local cable television provider
B)hi-definition DVD players
C)champagne
D)housing

Question

Quizplus · Accepted Answer

Housing is considered a necessity and an essential good, meaning its demand is relatively insensitive to changes in income. Therefore, its income elasticity of demand is likely to be low.

For Which of the Following Goods Is the Income Elasticity