The price elasticity of demand for a particular good is influenced by which of the following factors?
A) The availability of inputs to produce the good.
B) The income of the sellers.
C) The availability of substitutes.
D) The level of competition among sellers.

Question

Quizplus · Accepted Answer

The availability of substitutes has a significant impact on the price elasticity of demand because when there are more substitutes available for a good, consumers can more easily switch to those substitutes if the price of the original good increases. This makes the demand for the original good more elastic. The availability of inputs, income of sellers, and level of competition among sellers may affect the supply of the good, but are less likely to affect the price elasticity of demand.

The Price Elasticity of Demand for a Particular Good Is