The Demand for a Product Tends to Be Less Elastic

question 155

True/False

The demand for a product tends to be less elastic as the product accounts for a larger fraction of a consumer's budget.

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Definitions:

Consumption

The purchasing and use of goods and services by households.

Units

Basic quantities or measurements, such as items sold or produced, used for analysis or calculation in various contexts.

Unit Elastic

A scenario in demand or supply where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Tax Lowered

The reduction of the rates at which individuals or corporations are taxed by the government.