A determinant of the price elasticity of demand is
A) whether the good is a durable or a nondurable.
B) the availability of resources used in the production of the product.
C) how well consumers like the good.
D) the proportion of the consumer's total budget spent on the good.

Question

Quizplus · Accepted Answer

The proportion of the consumer's total budget spent on the good affects price elasticity of demand because if a good takes up a large portion of the budget, consumers are more likely to be sensitive to price changes, making demand more elastic.

A Determinant of the Price Elasticity of Demand Is