Which of these is NOT a determinant of the price elasticity of demand?
A) sales tax rate placed on an item
B) availability of substitute products
C) whether the item is a necessity or a luxury
D) time for adjustment

Question

Quizplus · Accepted Answer

The sales tax rate placed on an item is not a determinant of the price elasticity of demand. Price elasticity of demand is determined by factors such as the availability of substitute products, whether the item is a necessity or a luxury, and the time consumers have to adjust to price changes, not by the tax rate on the item.

Which of These Is NOT a Determinant of the Price