Compare the demand for sugar with demand for gasoline. The demand for sugar is likely A. more elastic because sugar tends to represent a smaller fraction of a consumer's budget. B. more inelastic because sugar tends to represent a smaller fraction of a consumer's budget. C. more elastic because sugar tends to be purchased in larger quantities. D. more elastic because sugar tends to represent a larger fraction of a consumer's budget. E. more inelastic because sugar tends to be purchased more frequently.

The demand for sugar is generally considered more elastic because it is often seen as a non-essential good that can easily be substituted with other sweeteners or avoided altogether, especially when prices rise. Since sugar typically represents a smaller fraction of a consumer's budget, an increase in price may lead consumers to significantly reduce their consumption or switch to alternatives, thus reflecting the sensitivity to changes in price. In contrast, gasoline is a necessity for many people, particularly for commuting and transportation. This means that even if gasoline prices increase, consumers are less likely to reduce their consumption drastically because they rely on it for daily activities. This results in more inelastic demand, as consumers will continue purchasing gasoline despite its higher price due to limited substitutes and necessity-driven demands.