The demand for a cup of coffee is ______________ than is the demand for a dinner at a fancy restaurant because _________________.
A) more price elastic; a cup of coffee requires a smaller portion of one's income.
B) less price elastic; a cup of coffee requires a smaller portion of one's income.
C) less price elastic; a cup of coffee is more of a luxury.
D) more price elastic; a cup of coffee is more of a luxury.

Question

Quizplus · Accepted Answer

The demand for a cup of coffee is less price elastic because it requires a smaller portion of one's income, making consumers less sensitive to price changes compared to more expensive items like a fancy dinner.

The Demand for a Cup of Coffee Is ______________ Than