Question 22012EconomicsWAEC
Where a commodity takes an insignificant proportion of the consumer’s income, demand for it will be
A
unitary elastic
B
price inelasti
C
C. fairly elastic
D
income inelastic
Step-by-Step Explanation
When a commodity constitutes a small fraction of a consumer's income, its demand tends to be price inelastic, meaning that changes in price have little effect on the quantity demanded. Consumers are less sensitive to price fluctuations for these goods because they do not significantly impact their overall budget. As a result, even with price increases, the quantity demanded remains relatively stable.