Assume That a Family Spends 35 Percent of Its Income

Multiple Choice

Assume that a family spends 35 percent of its income on housing,20 percent on travel-related expenses,10 percent on utilities,25 percent on health care,and 5 percent on miscellaneous items.Demand for which category will be most responsive to a change in price?

A) miscellaneous
B) health care
C) utilities
D) travel-related expenses
E) housing