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 would affect the supply of the good, not the price elasticity of demand. Price elasticity of demand is affected by factors such as the ease of substitution, availability of substitute goods, and proportion of budget spent on the item.

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