If consumers always spend 15 percent of their income on clothing, then the income elasticity of demand for clothing is a. 0.15 b. 1.00 c. 1.15 d. 1.50 e. none of the answer choices

To determine the income elasticity of demand for clothing when consumers always spend 15 percent of their income on clothing, we can use the formula for income elasticity of demand (E): \[ E = \frac{\% \text{ change in quantity demanded}}{\% \text{ change in income}} \] In this case, since consumers are spending a constant percentage (15%) of their income on clothing, we can infer that the quantity demanded will change in direct proportion to changes in income. 1. If income increases by 1%, the amount spent on clothing will also increase by 1% (since they still spend 15% of their income). 2. Therefore, the percentage change in quantity demanded is equal to the percentage change in income. This means that: \[ E = \frac{1\%}{1\%} = 1 \] Thus, the income elasticity of demand for clothing is 1.00. The correct answer is: **b. 1.00**