The price elasticity of demand coefficient for a good will be lower if which of the following occurs?
A)There are many substitutes for the good.
B)The longer a price change persists.
C)The less of the budget is spent on the good.
D)The higher the price of complements.

Question

Quizplus · Accepted Answer

When less of the budget is spent on a good, consumers are less sensitive to price changes, leading to lower price elasticity of demand.

The Price Elasticity of Demand Coefficient for a Good Will