why-do-products-that-constitute-a-large-portion-of-a-consumers-budget-tend-to-ha

Question

Why do products that constitute a large portion of a consumer's budget tend to have more elastic demand?

Accepted Answer

Because consumers are more sensitive to price changes for expensive items.

Answer

Because consumers are less sensitive to price changes for expensive items.

Answer

Because these products are usually necessities.

Answer

Because these products have fewer substitutes.