According to the textbook,the elasticity of demand for a product in a given country is determined at least in part by the following two important factors:
A) geographic location and economic stability
B) currency rates and interest rates
C) income level and competitive conditions
D) tax rates and standard of living
E) perception of what is a luxury and what is a necessity

Question

Quizplus · Accepted Answer

The elasticity of demand for a product depends on two primary factors: the level of income of consumers and the competitive conditions. Other factors such as tax rates and standard of living can also have an impact, but they are not as significant as income level and competition. Additionally, the perception of what is considered a luxury versus a necessity can also play a role in elasticity of demand, but it is not as important as the other factors mentioned in choice C.

According to the Textbook,the Elasticity of Demand for a Product