For which of the following goods is the income elasticity of demand likely lowest?
A)water
B)sapphire pendant necklaces
C)filet mignon steaks
D)fresh fruit

Question

Quizplus · Accepted Answer

Water is considered a basic necessity for survival, so even if someone's income decreases, they will still have to buy water. Therefore, the income elasticity of demand for water is likely to be low.

For Which of the Following Goods Is the Income Elasticity