Which of the following causes demand to be more elastic with respect to price?
A) Shorter periods of time to adjust to a change in price.
B) A steeper demand curve for a given price and quantity.
C) Fewer substitutes.
D) A high ratio of price to income.

Question

Quizplus · Accepted Answer

Demand tends to be more elastic when the price of a good represents a significant portion of a consumer's income, as consumers are more sensitive to price changes and may alter their purchasing decisions more readily.

Which of the Following Causes Demand to Be More Elastic