Since an expensive sports car constitutes a greater portion of the consumer's budget than does laundry soap,the elasticity of demand for an expensive sports car is _____.

Question

Quizplus · Accepted Answer

The elasticity of demand is higher for goods that take up a larger portion of a consumer's budget, like expensive sports cars, because consumers are more sensitive to price changes for such significant expenditures.

Since an Expensive Sports Car Constitutes a Greater Portion of the Consumer's