Which of the two following pairs of product categories are income inelastic?
A)Food and shelter.
B)Furniture and clothing.
C)Recreation and restaurant meals.
D)Education and textbooks.

Question

Quizplus · Accepted Answer

Food and shelter are basic necessities and do not heavily depend on income changes. People will still need to buy food and pay for housing regardless of their income level. Therefore, their demand for these products is income inelastic, meaning that even if their income changes, their demand for food and shelter will not change significantly.

Which of the Two Following Pairs of Product Categories Are