All other things constant,if a _____ proportion of a consumer's budget is spent on a good,the demand for the good will be more _____ and the consumer will purchase a substitute instead.
A)greater; price elastic
B)smaller; unit elastic
C)smaller; price elastic
D)greater; price inelastic
E)greater; stable

Question

Quizplus · Accepted Answer

When a larger proportion of a consumer's budget is spent on a good, the demand for that good tends to be more price elastic. This means consumers are more sensitive to price changes and are more likely to switch to substitutes if the price increases.

All Other Things Constant,if a _____ Proportion of a Consumer's