The larger the share of a good in a consumer's budget, holding everything else constant, the
A)more price elastic is a consumer's demand.
B)more vertical is a consumer's demand curve.
C)more price inelastic is a consumer's demand.
D)more unit elastic is a consumer's demand.

Question

Quizplus · Accepted Answer

When a good takes up a larger share of a consumer's budget, the consumer is more sensitive to price changes, making the demand more price elastic.

The Larger the Share of a Good in a Consumer's