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

Question

Quizplus · Accepted Answer

When a good or service takes up a large part of a consumer's budget, the demand for that good or service is generally more elastic. This is because consumers are more sensitive to price changes when the item represents a significant expenditure.

Generally, Expenses on a Truck Are a Large Part of a Consumer's