A good will tend to be more price elastic if it
A)is a luxury good.
B)has no close substitutes.
C)is a small part of the household budget.
D)is a necessity.

Question

Quizplus · Accepted Answer

Luxury goods tend to have more substitute goods available, making consumers more sensitive to price changes. This means that a small change in price can result in a larger change in demand for the good.

A Good Will Tend to Be More Price Elastic If