Food and clothing tend to have
A)small income elasticities because consumers,regardless of their incomes,choose to buy relatively constant quantities of these goods.
B)small income elasticities because consumers buy proportionately more of both goods at higher income levels than they buy at low income levels.
C)large income elasticities because they are necessities.
D)large income elasticities because they are relatively inexpensive.

Question

Quizplus · Accepted Answer

Food and clothing are considered necessities and consumers tend to buy relatively constant quantities of these goods regardless of their incomes. Therefore, they have small income elasticities.

Food and Clothing Tend to Have