The determinants of price elasticity of demand include:
A) availability of substitutes, cost relative to benefit, and scope of market.
B) degree of necessity, cost relative to income, scope of market, and adjustment time.
C) availability of complements, cost relative to income, and scope of market.
D) cost relative to income, scope of demand, and adjustment time.

Question

Quizplus · Accepted Answer

The determinants of price elasticity of demand include the degree of necessity, cost relative to income, scope of market, and adjustment time. These factors influence how sensitive the quantity demanded is to a change in price.

The Determinants of Price Elasticity of Demand Include