The demand for items on which we spend a large percentage of our income
A)will be perfectly inelastic.
B)will tend to be elastic.
C)will tend to be inelastic.
D)will be perfectly elastic.

Question

Quizplus · Accepted Answer

The demand for items on which we spend a large percentage of our income will tend to be elastic. This is because if the price of these items increases, we are more likely to reduce our consumption of them.

The Demand for Items on Which We Spend a Large