Generally, expenses on a sport utility vehicle are a large part of a consumer's budget, so the demand for sport utility vehicles is more likely to be
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly elastic.

Question

Quizplus · Accepted Answer

When expenses on a good are a large part of a consumer's budget, the demand for that good tends to be elastic because consumers are more sensitive to price changes.

Generally, Expenses on a Sport Utility Vehicle Are a Large