As the percentage of the consumers income accounted for by a
As the percentage of the consumer\'s income accounted for by a particular good decreases, demand for the good will: tend to become more price elastic. tend to become more price inelastic. tend to become closer to unit elastic. tend toward being perfectly elastic.
Solution
Answer is Tend to become more price inelastic.
Explanation:
The proportion of income spend on a commodity tends to decide the elasticity of demand. When more proportion of income spend on a commodity is higher, the demand for that product responds highly o price. When the income proportion spend on the product is lesser, then the consumer is little responsive to the price as rarely effect the budget.
