Question

why is the price elasticity of demand larger for non-essential goods than for essential good?

Answer 1

Price elasticity show how the change in demand occurred while change in price.

For non essential good if Price increases than demand also decrease fastly as these are not as much required good and people want to expenditure more on essential good than non -essential. AndAnx people can try to use alternative of non essential good or use it very less.

While essential good always have high demand and if Price increases than it demand change very less as these are essential and always have demand. So Change in Demand is less so elasticity also less.