Other things being equal, demand is less elastic
A) the more expensive the good is.
B) the smaller the percentage of a total budget that a family spends on a good.
C) the longer is the time period for adjustment.
D) the more substitutes a good has.

Question

Quizplus · Accepted Answer

Demand is less elastic for goods that represent a smaller percentage of a family's total budget because consumers are less sensitive to price changes of such goods. They are less likely to change their buying habits if the price of a low-budget item increases slightly.

Other Things Being Equal, Demand Is Less Elastic