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Demand on goods for which consumers spend a ……….. portion of their incomes is …………. * great, perfectly inelastic small, elastic small, unitary elastic great, elastic

Answer:

Great portion of incomes results in perfectly inelastic demand for goods. This means that the quantity of goods demanded will not change when the price of the goods changes.

Explaining Perfectly Inelastic Demand

Perfectly inelastic demand occurs when the quantity of goods demanded does not change, regardless of the changes to the price of the goods. This means that even if the price of the goods increases, the quantity of goods demanded will remain the same. This is because the consumers view the goods as essential and are therefore willing to pay whatever price is necessary to acquire them.

Examples of Perfectly Inelastic Demand

Perfectly inelastic demand is often seen in goods that are essential to everyday life. This includes food, clothing, and housing. These goods are necessary for life, so people are willing to pay whatever price is necessary to acquire them. This means that the quantity demanded will not change, even if the price of the goods increases.

Factors that Affect Perfectly Inelastic Demand

The factors that affect perfectly inelastic demand include the availability of substitutes, the necessity of the goods, and the level of income of the consumers. If there are substitutes available, then the demand for the goods may not be perfectly inelastic. If the goods are not essential, then the demand may not be perfectly inelastic either. Finally, if the consumers have a higher level of income, then they may be able to purchase more of the goods, even if the price increases.

Related Questions:

What is perfectly inelastic demand?
What are some examples of perfectly inelastic demand?
What are the factors that affect perfectly inelastic demand?
How is perfectly inelastic demand different from unit elastic demand?
What is the relationship between price and quantity demanded for perfectly inelastic demand?
What happens to the quantity demanded when the price of a good is perfectly inelastic?
What happens to the demand curve when the demand for a good is perfectly inelastic?
What is the difference between perfectly inelastic demand and inelastic demand?
How does perfectly inelastic demand affect the total revenue of a firm?
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