All of these determine price elasticity of demand EXCEPT
A) the availability of substitutes.
B) a change in the price of the resources used to produce the product.
C) the adjustment time for buyers.
D) the proportion of a person's budget spent on the good.

Question

Quizplus · Accepted Answer

The price elasticity of demand is determined by factors such as the availability of substitutes, the time consumers have to adjust to price changes, and the proportion of a person's budget spent on the good. A change in the price of resources used to produce the product affects the supply side rather than the demand side, and thus does not directly determine the price elasticity of demand.

All of These Determine Price Elasticity of Demand EXCEPT