A pack of gum is ______________ than a steak because _______________.
A)less price elastic;it is a smaller portion of one's income
B)more price elastic;it is a smaller portion of one's income
C)less price elastic;they are more of a luxury good
D)more price elastic;they are more of a luxury good

Question

Quizplus · Accepted Answer

A pack of gum is less price elastic because it is a smaller portion of one's income. This means that even if the price of gum were to rise, consumers are unlikely to significantly reduce their demand for it, as it is not a significant expenditure for them. Therefore, the demand for gum is relatively inelastic.

A Pack of Gum Is ______________ Than a Steak Because