Which of the following is not one of the factors that determine whether or not the demand for a particular good is elastic or inelastic in respect to the price?
A)How much of a consumer's budget is spent on the good
B)How much the good costs
C)Whether the good being bought is a luxury item or a necessity
D)If close substitutes for the good are available

Question

Quizplus · Accepted Answer

How much the particular good costs is not one of the factors that determine whether or not the demand for a particular good is elastic or inelastic in respect to the price.
Key Takeaway: There are four main factors that help to determine whether or not the demand for a particular good is elastic or inelastic in respect to the price: how much of a consumer's budget is spent on the good, whether the good being bought is a luxury item or a necessity, if close substitutes for the good are available, and the amount of time in which the switch to another good is considered.

Which of the Following Is Not One of the Factors