Generally speaking, the smaller the percentage of one's total budget devoted to a particular product, the more price elastic will be the demand for that product.

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Price elasticity of demand is determined by several factors including the availability of substitutes, necessity of the product, and the proportion of income spent on the product. However, the statement is reversed; typically, the larger the percentage of one's budget devoted to a product, the more price elastic the demand, as consumers are more sensitive to price changes when a product takes up a larger portion of their budget.

Generally Speaking, the Smaller the Percentage of One's Total Budget