Demand for a good will tend to be more inelastic if it exhibits which of the following characteristics?

The good has many substitutes

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The good is a luxury(as opposed to a necessity)

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The good is a small part of the consumer's income

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There is a great deal of time for the consumer to adjust to the change in prices

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Solution

The correct option is C The good is a small part of the consumer's income
Demand for a good will tend to be more elastic if the small part of the consumer's income spent on it, because a small part of income spent on good have inelastic demand.

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Demand for a good will tend to be more inelastic if it exhibits which of the following characteristics?

The correct option is C The good is a small part of the consumer's incomeDemand for a good will tend to be more elastic if the small part of the consumer's income spent on it, because a small part of income spent on good have inelastic demand.

The correct option is C The good is a small part of the consumer's income
Demand for a good will tend to be more elastic if the small part of the consumer's income spent on it, because a small part of income spent on good have inelastic demand.