The price elasticity of demand for a good such as water is likely to be very low because:

A) the price is a small percentage of most budgets.
B) water has some good substitutes.
C) water is considered a luxury.
D) the share of income spent on water is large.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Price Elasticity

An indicator of the sensitivity of demand for a product to variations in its price, represented as a percentual change.

Small Percentage

A quantitatively minor proportion or fraction of a total amount, often implying a negligible or minor impact.