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definition: If a product consumes a large portion of consumers’ budgets, the demand for that product will be elastic
- If a product consumes a small portion of consumers’ budgets, the demand for that product will be inelastic connected key terms: factors impacting elasticity | availability of substitutes | necessities | luxury | changes over time | total revenue
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▪ new house ▪ vacation to hawaii ▪ university tuition inelastic:
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