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

Question

Quizplus · Accepted Answer

When a larger percentage of a person or family's total budget is spent on a good, the demand for that good tends to be more elastic. This is because the cost of the good has a greater impact on the overall budget and it becomes more difficult for the consumer to continue purchasing the good if the price increases.

Other Things Being Equal, Demand Is More Elastic the