Which of these would result in a lower price elasticity of demand?
A) a longer period of time for adjustment
B) more substitutes available
C) less total income spent on the good
D) reduced necessity of the good

Question

Quizplus · Accepted Answer

Price elasticity of demand tends to be lower when a smaller portion of a consumer's total income is spent on the good, as changes in its price have a less significant impact on purchasing decisions.

Which of These Would Result in a Lower Price Elasticity