If Consumers Spend More Money on Coffee Than on Sugar

question 122

Multiple Choice

If consumers spend more money on coffee than on sugar, then the demand for a pound of coffee is likely _____ price elastic than the demand for a pound sugar of because _____.

• A) less; coffee requires a larger portion of consumers' incomes
• B) more; coffee requires a larger portion of consumers' incomes
• C) less; consumers will take a longer time to adjust to a change in the price
• D) more; consumers will take a longer time to adjust to a change in the price

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