The demand for a necessity whose cost is a small portion of one's total income is
A)perfectly price inelastic.
B)perfectly price elastic.
C)relatively price inelastic.
D)relatively price elastic.

Question

Quizplus · Accepted Answer

The demand for a necessity, especially one that constitutes a small portion of one's total income, tends to be relatively price inelastic. This means that changes in price have a smaller effect on the quantity demanded, as consumers will continue to purchase these goods even if the price increases, due to their essential nature.

The Demand for a Necessity Whose Cost Is a Small