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swat32
3 years ago
10

Assume that a family spends 35% of its income on housing, 20% on travel-related expenses, 10% on utilities, 25% on health care,

and 5% on miscellaneous items. Demand for which category will be most responsive to a change in price?
Business
1 answer:
iogann1982 [59]3 years ago
5 0

Answer:

We need the slope of each category.

Explanation:

Having the amount of each category is not enough to find the responsive of each one of them to a change in their prices, we need a measure called elasticity, this indicator measures the responsive of a product to a change in its price.

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