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

Question

Quizplus · Accepted Answer

Since expenses on toothpaste are a small part of a consumer's budget, it is likely that the demand for toothpaste is relatively inelastic. This means that changes in price will have little effect on the quantity demanded of toothpaste.

Generally, Expenses on Toothpaste Are a Small Part of a Consumer's