Look at the five goods below to determine which of the five best fits the following statement: How much people spend on a good tends to be independent of its price.
A) birthday candles
B) automobile
C) mattress
D) lobster dinner
E) rock concert

Question

Quizplus · Accepted Answer

Birthday candles are a good example of a product where consumption is relatively price inelastic, meaning people will buy them regardless of small price changes because they are a necessary component of a birthday celebration and typically inexpensive, making their cost a minor consideration.

Look at the Five Goods Below to Determine Which of the Five