Demand for a good which comprises a relatively small share of the consumer's budget tends to be
A)inelastic.
B)perfectly inelastic.
C)elastic.
D)perfectly elastic.

Question

Quizplus · Accepted Answer

Goods that comprise a small share of a consumer's budget tend to have inelastic demand because consumers are less sensitive to price changes; the expenditure on such goods is a small portion of their income.

Demand for a Good Which Comprises a Relatively Small Share