Demand sensitivity depends on all of the following except:
A)how low the price of the good is.
B)the sensitivity of a firm's output to changes in its price.
C)the consumer's income.
D)the availability and closeness of substitutes.
E)the amount of time a consumer has to adjust to price changes.

Question

Quizplus · Accepted Answer

Demand sensitivity, also known as price elasticity of demand, is affected by all the options except for the sensitivity of the firm's output to changes in its price. Instead, it is determined by factors such as the price of the good, consumer's income, availability and closeness of substitutes, and the amount of time a consumer has to adjust to price changes.

Demand Sensitivity Depends on All of the Following Except