Which of the following would tend to make demand INELASTIC?
A) the amount of time analyzed is quite long
B) there are lots of substitutes available
C) the product is highly durable
D) the proportion of the budget spent on the item is very small
E) no one really wants the product at all

Question

Quizplus · Accepted Answer

When the proportion of the budget spent on an item is very small, consumers are less sensitive to price changes, making demand inelastic.

Which of the Following Would Tend to Make Demand INELASTIC