What income elasticities do food and clothing tend to have,and why
A)small income elasticities because consumers, regardless of their incomes, choose to buy these goods
B)small income elasticities because consumers will buy proportionately more at higher income levels than they will at low income levels
C)large income elasticities because they are necessities
D)large income elasticities because they are relatively cheap

Question

Quizplus · Accepted Answer

Food and clothing tend to have small income elasticities because they are considered necessities, and consumers will continue to purchase them regardless of changes in income.

What Income Elasticities Do Food and Clothing Tend to Have,and