Answer: The higher the percentage of your budget spent on a particular good, the more elastic your demand for goods overall
Explanation: The elasticity of demand is an economic principle which measures the rate or degree of consumer response to changes in quantity demanded as a result of a change in price, given that all other factors remain equal. This means that all things being equal, the desire for a good reduces as the price increases.
For some products, the desire to buy them drops rapidly with even a slight change in price while quantity demanded for some other products (especially those deemed essential by the consumer) remain constant or just a slight difference even with rapid increase in price.
