The demand for items on which we spend a large percentage of our income
A)will be perfectly inelastic.
B)will tend to be elastic.
C)will tend to be inelastic.
D)will be perfectly elastic.

Question

Quizplus · Accepted Answer

When an item represents a large part of a person's income, they will typically be more price-sensitive and more likely to look for alternatives. This means that the demand for these items will tend to be elastic, meaning that changes in price will have a relatively greater impact on the quantity demanded.

The Demand for Items on Which We Spend a Large