Vernon spends the following percentages of his budget on the following goods: 23 percent on good A, 11 percent on good B, 1 percent on good C, and 3 percent on good D. For which good is price elasticity of demand the highest, ceteris paribus?a. good A.
b. good B.
c. good C.
d. good D.

a. good A.

Explanation:

Data provided in the question

Spending percentage are as follows

For goods A = 23%

For goods B = 11%

For goods C = 1%

For goods D = 3%

Now the highest price elasticity of demand by ceteris paribus that means all other things would remain unchanged or constant

Since, Goods A has the highest spending percentage so it would lead to the highest price elasticity of demand