Which of the following would NOT affect a good's price elasticity of demand?
A) The ease of substitution between goods
B) The cost of producing the good
C) The number of substitute goods available
D) The proportion of one's budget spent on an item

Question

Quizplus · Accepted Answer

The cost of producing the good does not directly affect the price elasticity of demand. The price elasticity of demand is determined by factors such as the availability of substitute goods, the proportion of one's budget spent on the item, and the ease of substitution between goods.

Which of the Following Would NOT Affect a Good's Price