As the percentage of the consumer's income accounted for by a particular good decreases,demand for the good will:
A)tend to become more price elastic.
B)tend to become more price inelastic.
C)tend to become closer to unit elastic.
D)tend toward being perfectly elastic.

Question

Quizplus · Accepted Answer

When a good accounts for a smaller percentage of a consumer's income, the consumer is less sensitive to price changes, making the demand for the good more price inelastic.

As the Percentage of the Consumer's Income Accounted for by a Particular