Which of the following effects would generally make demand curves more inelastic?
A) "You can't take it with you" effect
B) "Other people's money" effect
C) Both effects
D) Neither effect

Question

Quizplus · Accepted Answer

Both the "you can't take it with you" effect and the "other people's money" effect can make demand curves more inelastic. The former refers to consumers being less sensitive to price changes for goods they perceive as essential or urgent, while the latter involves spending someone else's money, leading to less price sensitivity.

Which of the Following Effects Would Generally Make Demand Curves