Which of the following factors would indicate an inelastic demand?
A) The good is a necessity, rather than a luxury.
B) The good represents a small fraction of the budget.
C) Demand is measured over a shorter period of time.
D) all of the above

Question

Quizplus · Accepted Answer

All the listed factors (A: the good is a necessity, B: the good represents a small fraction of the budget, C: demand is measured over a shorter period of time) are characteristics of inelastic demand, where consumers' purchasing behavior changes little with price changes.

Which of the Following Factors Would Indicate an Inelastic Demand