Question if you spend a large portion of your income on a good,

a. demand for that good is less elastic than if you spent a smaller portion of your income on the good.

b. supply of that good is price inelastic.

c. demand for that good is more elastic than if you spent a smaller portion of your income on the good.

d. supply of that good would be price elastic.

e. the good must be able to be produced at a constant (or gently rising) opportunity cost.

c. demand for that good is more elastic than if you spent a smaller portion of your income on the good.

Demand elasticity is the change in demand as the price changes - aka price has a big effect on demand.

Think about if the cost of a candy bar doubles from $1 to $2. This is a big increase but $2 isn't a huge portion of your income so it isn't a huge deal and you will probably keep buying.  Now imagine if your car payment doubles from $350 to $700. Because this is such a big portion of your income, you will probably look to trade it in for a cheaper car.

contributions made after 1986. after-tax contributions to employer plans made after 1986 are recovered pro rata with taxable amounts. the remaining $80,000 is from pre-tax contributions, employer matching dollars, and earnings on those amounts.

answerboth the short run phillips curve and the aggregate demand and aggregate supply model