Which good is the MOST income inelastic?
A) private college education
B) cigarettes
C) diamonds
D) caviar

Question

Quizplus · Accepted Answer

Cigarettes are the most income inelastic good among the options provided. This is because the demand for cigarettes tends to be less sensitive to changes in income compared to luxury items like private college education, diamonds, and caviar. People who are addicted to cigarettes will continue to buy them even if their income decreases, making the demand for cigarettes relatively stable across different income levels.

Which Good Is the MOST Income Inelastic