Question

If you spend more on rent than on soap, your price elasticity of demand for housing is likely to be _______.

• A. greater than your price elasticity of demand for soap
• B. less than your price elasticity of demand for soap
• C. equal to your price elasticity of demand for soap
• D. none of the above

Answer 1

The correct option is A greater than your price elasticity of demand for soap

solution:

People spend more on rent than on soap, so the price elasticity of demand for housing is likely to be larger than the price elasticity of demand for soap this is a general statement is just because this is just defination based.

hence the correct option : A