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Generally speaking, the smaller the percentage of one's total budget devoted to a particular product, the more price elastic will be the demand for that product.
Percentage Of Budget
A financial metric that represents the proportion of a specific item or category's cost in comparison to the total budget.
Price Elastic
A term related to price elasticity of demand, indicating how responsive the quantity demanded of a good or service is to a change in its price.
Product
Anything that can be offered to a market to satisfy a want or need, including goods, services, and ideas.
- Acquire knowledge about the differences between elastic and inelastic demand.
- Determine the elements that affect demand elasticity, such as the presence of alternative options.
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Learning Objectives
- Acquire knowledge about the differences between elastic and inelastic demand.
- Determine the elements that affect demand elasticity, such as the presence of alternative options.
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