If consumers spend more money on coffee than on sugar,then the demand for a pound of coffee is probably _________________ than is the demand for a pound sugar of because ________________.
A) less price elastic; coffee requires a larger portion of consumers' incomes.
B) more price elastic; coffee requires a larger portion of consumers' incomes.
C) less price elastic; people will take a longer time to adjust to the change in its price.
D) more price elastic; people will take a longer time to adjust to the change in its price

Question

Quizplus · Accepted Answer

The demand for coffee is more price elastic because it requires a larger portion of consumers' incomes, making consumers more sensitive to price changes.

If Consumers Spend More Money on Coffee Than on Sugar,then