A given percentage rise in the price of a good is likely to result in a larger percentage decrease in the quantity of the good demanded
A)the shorter the passage of time.
B)the larger the proportion of income spent on it.
C)the harder it is to obtain good substitutes.
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The larger the proportion of income spent on a good, the more sensitive consumers are to price changes, leading to a larger percentage decrease in quantity demanded when prices rise.

A Given Percentage Rise in the Price of a Good