A good that takes up a very large percentage of a consumer's budget will tend to have _____
A)an elastic demand.
B)a perfectly elastic demand.
C)an inelastic demand.
D)an upward-sloping demand curve.
E)many close substitutes.

Question

Quizplus · Accepted Answer

Goods that consume a large portion of a consumer's budget tend to have elastic demand because consumers are more sensitive to price changes for these items, leading them to adjust their purchasing habits more significantly in response to price fluctuations.

A Good That Takes Up a Very Large Percentage of a Consumer's