The price elasticity of demand for bread
A)is computed as the percentage change in quantity demanded of bread divided by the percentage change in price of bread.
B)depends,in part,on the availability of close substitutes for bread.
C)reflects the many economic,social,and psychological forces that influence consumers' tastes for bread.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The price elasticity of demand for bread is computed as the percentage change in quantity demanded of bread divided by the percentage change in price of bread. However, this elasticity also depends on the availability of close substitutes for bread, as well as the economic, social, and psychological forces that influence consumers' tastes for bread. These factors can all affect how sensitive consumers are to changes in price, and therefore impact the overall price elasticity of demand for bread.

The Price Elasticity of Demand for Bread