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Question
If a good takes up a significant share of consumers' budget, its demand will be ______.
Options
Less elastic
Highly elastic
Unitary elastic
Perfectly elastic
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Solution
If a good takes up a significant share of consumers' budget, its demand will be highly elastic.
Explanation:
If a good consumes a significant portion of the consumer budget, it implies that it cannot be a necessary comfort or jointly demanded good.
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