Demand for clothing tends to be
A)elastic because there are few substitutes for clothing
B)inelastic because there are few substitutes for clothing
C)elastic because expenditures for clothing represent a large part of the consumer's budget
D)inelastic because expenditures for clothing represent a large part of the consumer's budget
E)elastic because it is a broadly defined good

Question

Quizplus · Accepted Answer

Clothing is a necessity and there are few substitutes for it, which makes the demand for clothing inelastic. This means that changes in price have little effect on the quantity demanded. Even if the price of clothing increases, consumers will still purchase it because they need it. Additionally, expenditures for clothing typically represent a small portion of a consumer's budget, further contributing to the inelastic demand for clothing.

Demand for Clothing Tends to Be