Demand becomes more elastic as:
A)the number of substitutes available declines.
B)the time period becomes shorter.
C)a good makes up a larger percentage of a consumer's budget.
D)a product is defined more broadly.
E)the producer has more time to respond to price changes.

Question

Quizplus · Accepted Answer

As a good makes up a larger percentage of a consumer's budget, consumers are more sensitive to price changes, making demand more elastic.

Demand Becomes More Elastic As