The elasticity of demand for a particular product depends upon:
A) the availability of substitutes.
B) the producer's costs.
C) the availability of raw materials.
D) the quantity the producer is willing to supply.
E) All of the above.

Question

Quizplus · Accepted Answer

The elasticity of demand for a particular product depends on the availability of substitutes. If there are close substitutes available, consumers can easily switch to other products when the price of the original product increases or when the price of the substitute decreases. This makes the demand for the original product elastic. However, if there are no close substitutes available, consumers may continue to buy the product even if prices increase, making the demand for the product inelastic. The producer's costs and availability of raw materials can affect the producer's supply decision, but they do not directly influence the elasticity of demand for the product.

The Elasticity of Demand for a Particular Product Depends Upon