Demand for a good will tend to be more inelastic if it exhibits the following characteristics —
A. The good has many substitutes
B. The good is a luxury (as opposed to a necessity)
C. The good is a small part of the consumer’s income
D. There is a great deal of time for the consumer to adjust to the change in prices
Answer:C
Demand for a good will tend to be more inelastic if it exhibits the following characteristics —
A. The good has many substitutes B. The good is a luxury (as opposed to a necessity) C. The good is a small part of the consumer’s income D. There is a great deal of time for the consumer to adjust to the change in prices