Which of the following is most likely to have an income elasticity of demand that is less than 1?
A) movies
B) airline travel
C) foreign travel
D) food
E) restaurant meals

Question

Quizplus · Accepted Answer

Food is a necessity, so even if income increases, the demand for food may not increase proportionally. Therefore, the income elasticity of demand for food is likely to be less than 1.

Which of the Following Is Most Likely to Have an Income