The demand for a subway ride is likely _____ price elastic than the demand for a car because _____.
A) less; a subway ride requires a smaller portion of one's income
B) more; a subway ride requires a smaller portion of one's income
C) less; consumers will take a longer time to adjust to a change in the price of a subway ride
D) more; consumers will take a longer time to adjust to a change in the price of a subway ride

Question

Quizplus · Accepted Answer

The demand for a subway ride is likely less price elastic because it constitutes a smaller portion of one's income, making consumers less sensitive to price changes compared to more significant expenses like owning and operating a car.

The Demand for a Subway Ride Is Likely _____ Price