WAEC Economics 2012 Objective — Question 7

Question 7 of 49 from the West African Examinations Council (WAEC) Economics 2012 Objective paper, with the correct answer and a full explanation.

Where a commodity takes an insignificant proportion of the consumer's income, demand for it will be

A. unitary elastic
B. price inelasticCorrect
C. fairly elastic
D. income elastic

Explanation

Commodities that take insignificant proportion of consumers' income usually have inelastic demand. When there are increases in price, consumers have little feeling and the change in quantity as a result will be small.

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