You are more sensitive to a change in price if you
A) spend a lot of your income on the good.
B) spend a small percentage of your income on the good.
C) buy very little of the good.
D) do not buy the good regularly.
E) have a very inelastic demand for the good.

Question

Quizplus · Accepted Answer

If you spend a lot of your income on a good, a change in price will have a bigger impact on your budget and therefore you will be more sensitive to that change in price.

You Are More Sensitive to a Change in Price If