The Percentage of the Household Budget Spent on Pencils Is

Multiple Choice

The percentage of the household budget spent on pencils is less than 1%, while that spent on housing is about 40%. If the price of both goods increases by 10%, the

A) percentage change in quantity demanded for pencils would drop by more than 10%.
B) percentage change in quantity demanded for housing would be near zero.
C) elasticity of demand for pencils would exceed that for housing.
D) elasticity of demand for housing would exceed that for pencils.