Suppose your annual income is $65 000 and your favourite magazine costs you $28 a year. Your demand for the magazine is likely to be
A)perfectly elastic.
B)inelastic.
C)unit elastic.
D)elastic.
E)elastic - the same as your demand for all other goods.

Question

Quizplus · Accepted Answer

The cost of the magazine is a very small fraction of your annual income, making your demand for it relatively inelastic.

Suppose Your Annual Income Is $65 000 and Your Favourite