How does the percentage of your budget you spend on a good affect it’s elasticity why is this the case?

The greater the percentage of your budget, the more elastic a person becomes, meaning that they are more price sensitive and small increases in price will affect your decision to purchase. The things will higher percentage of budget spending are usually bigger items and small changes in price can affect a person's discretionary money for the rest of their expenses.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi