Ceteris paribus,which of the following causes demand to be more elastic with respect to price?
A)Shorter periods of time to adjust to a change in price.
B)A steeper demand curve for a given price and quantity.
C)Fewer substitutes.
D)A high ratio of price to income.

Question

Quizplus · Accepted Answer

Elasticity of demand with respect to price increases when the ratio of price to income is high because consumers are more sensitive to price changes when the item represents a significant portion of their income.

Ceteris Paribus,which of the Following Causes Demand to Be More