Other things constant, the price elasticity of demand for a ...

[moongchi]

Other things constant, the price elasticity of demand for a product will be smaller (more inelastic) if:
 a. people spend a large share of their income on the product.
  b. people spend an insignificant share of their income on the product.
  c. the population in the market area is large.
  d. there are many good substitutes for the product.

Question 2

Which of the following factors is associated with products with a highly price elastic demand?
 a. Few close substitutes.
  b. A very short time period for consumers to respond to price changes.
  c. Many very close substitutes.
  d. A per unit price that is only a very small portion of most peoples' budgets.

[ebenov]

Answer to Question 1

b

Answer to Question 2

c

[moongchi]

Thanks for the timely response, appreciate it

[ebonylittles]

Great answer, keep it coming