A pound of coffee is _________________ than a pound sugar of because ________________.
A)less price elastic;it is a larger portion of one's income
B)more price elastic;it is a larger portion of one's income
C)less price elastic;people will have a longer time to adjust to the change in its price
D)more price elastic;people will have a longer time to adjust to the change in its price

Question

Quizplus · Accepted Answer

Coffee is considered a luxury good, meaning that it is not a necessity and consumers have more flexibility to adjust their consumption based on changes in price. Additionally, coffee tends to be a larger portion of one's discretionary income compared to sugar, which is a more basic staple. Therefore, a pound of coffee is more price elastic than a pound of sugar.

A Pound of Coffee Is _________________ Than a Pound Sugar