The elasticity of demand for a particular product depends upon:
A) the importance of the item in each customer's budget.
B) the urgency of the target customers' needs.
C) the availability of substitutes.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

The elasticity of demand for a particular product depends on all three factors: the importance of the item in each customer's budget (which affects their willingness and ability to pay for it), the urgency of the target customers' needs (which affects how much they are willing to pay for it), and the availability of substitutes (which affects whether they can easily switch to a different product if the price goes up). Therefore, the best choice is D, "All of the above."

The Elasticity of Demand for a Particular Product Depends Upon