Price elasticity of demand depends on all of the following except:
A) the amount of time a consumer has to adjust to price changes.
B) the sensitivity of firms' output to changes in the product's price.
C) the consumer's income.
D) the availability and closeness of substitutes.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how the quantity demanded of a good responds to a change in its price, not how the firm's output responds to price changes. Factors like time for adjustment, consumer income, and availability of substitutes directly affect demand elasticity, but the sensitivity of firms' output is related to the concept of price elasticity of supply, not demand.

Price Elasticity of Demand Depends on All of the Following