One of the factors influencing price elasticity of demand is the share of budget. I want you to focus on this for the week. Think of some items you used to purchase and what their price was (or ask someone older). Do you still purchase that item? Why or why not? What is the relative share of your budget (large, small, minuscule). What would happen to the economy if major items (house, car, etc) went up by 100-300% in a year? My first thought is always Double Bubble bubble gum. I remember getting it for a penny, and now it sells for a quarter (smaller pieces even, the nerve), but if I got misty for a bit of nostalgia, it's only a quarter. Even though the price has gone up 2500%, a quarter will not break me because it's such a small share of my overall budget.