All else equal, the price elasticity of demand for small-budget items such as soap tends to be ________ than the price elasticity of demand for big-ticket items such as flat-screen TVs.
A)higher
B)lower
C)very high
D)the same

Question

Quizplus · Accepted Answer

Goods that account for a small share of a person's budget have a lower price elasticity of demand than do goods that account for a large share of a person's budget.

All Else Equal, the Price Elasticity of Demand for Small-Budget