A good that takes up a very large percentage of the consumer's budget will tend to have
A) an elastic demand.
B) a perfectly elastic demand.
C) an inelastic demand.
D) an upward-sloping demand curve.
E) very many substitutes.

Question

Quizplus · Accepted Answer

Goods that take up a large percentage of a consumer's budget tend to have elastic demand because consumers are more sensitive to price changes when the good represents a significant portion of their spending.

A Good That Takes Up a Very Large Percentage of the Consumer's