All other things being equal, the __________ the percentage of a consumer's budget spent on a good, the __________ the good's price elasticity of ____________.
A)greater; higher; demand
B)smaller; lower; supply
C)greater; lower; demand
D)smaller; higher; supply

Question

Quizplus · Accepted Answer

The greater the percentage of a consumer's budget spent on a good, the higher the good's price elasticity of demand, because consumers are more sensitive to price changes when a good takes up a larger portion of their budget.

All Other Things Being Equal, the __________ the Percentage of a Consumer's