The price elasticity of demand for bread is
A)computed as the change in the price of bread divided by the change in the quantity demanded of bread.
B)independent of the availability of close substitutes.
C)influenced by whether consumers view bread as a necessity or luxury.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The price elasticity of demand is influenced by whether consumers view a good as a necessity or luxury, as this affects how sensitive they are to price changes.

The Price Elasticity of Demand for Bread Is