Question

Which of the following is not a determinant of a good’s price elasticity of demand? Select...

Which of the following is not a determinant of a good’s price elasticity of demand?

Select one: a. The slope of the demand curve b. The share of the good in the consumer’s total budget c. Whether the good is a luxury or a necessity d. The passage of time

Determinant in simple terms is the factor which affects the outcome of something

Here something is price elasticity of demand

Price elasticity of demand shows relationship between price and quantity demanded whether the demand is elastic or inelastic or unit elastic in nature

Some of the determinants that affect the price elasticity of demand are-

• presence of substitutes in the market
• time horizon like the demand will become elastic in the long run
• Whether the good is a necessity or luxury
• total budget of the consumer in which if the income spent on the good is high then price elasticity of demand is also high

Here slope is not the determinant

Slope is the ratio of change in price to thr change quantity demanded

So it is not a determinant

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
• Question 9 The most important determinant of the price elasticity of demand for a good is whether the good is a...

Question 9 The most important determinant of the price elasticity of demand for a good is whether the good is a necessity or a luxury. the definition of the market for a good. the share of the good in the consumer's budget. the availability of substitutes for the good. If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio books, the income elasticity of demand is -0.67 0.67 1.5. 2.

• Suppose that the price elasticity of demand of a good is -3. Its demand is _________...

Suppose that the price elasticity of demand of a good is -3. Its demand is _________ and the percentage change in its quantity demanded is ________ than the percentage change in its price. A. Elastic: Smaller B. Elastic: Greater C. Inelastic: Smaller D. Inelastic: Greater Which of the following is not a determinant of the price elasticity of demand? A. Availability of substitutes B. Degree of necessity C. Cost relative to income D. Availability of inputs With a(n) ______ demand,...

• Consider some determinants of the price elasticity of demand: • Availability of close substitutes • Whether...

Consider some determinants of the price elasticity of demand: • Availability of close substitutes • Whether the good is a necessity or a luxury • Whether the good is broadly defined • The proportion of a consumer's budget spent on the good • Time people have to adapt to new price changes A good without any close substitutes is likely to have relatively(elastic or inelastic)demand, because consumers cannot easily switch to a substitute good if the price of the good...

• 5. Determinants of the price elasticity of demand Consider some determinants of the price elasticity of...

5. Determinants of the price elasticity of demand Consider some determinants of the price elasticity of demand: • The availability of close substitutes • Whether the good is a necessity or a luxury • How broadly you define the market • The time horizon being considered A good with many close substitutes is likely to have relatively __(Elastic, Inelastic)___ demand since consumers can easily choose to purchase one of the close substitutes if the price of the good rises. A...

• A main determinant of the elasticity of demand for a good is Select one: a. price...

A main determinant of the elasticity of demand for a good is Select one: a. price of complements b. substitutability c. income d. price

• The price elasticity of demand measures 0.4. Which of the following statements is correct? Choose one:...

The price elasticity of demand measures 0.4. Which of the following statements is correct? Choose one: a. The product in question is a substitute. b. The product in question is a luxury product. c. This is unit elasticity. d. The product in question is a necessity. e. The product in question is inferior good.

• The absolute value of the price elasticity of demand for telescopes is 1.5. Therefore, telescopes can be classif...

The absolute value of the price elasticity of demand for telescopes is 1.5. Therefore, telescopes can be classified as a luxury. True False of the following, which is the best example of good with a perfectly inelastic demand? the demand for a college education by a student who has a full scholarship to an Ivy League school a diabetic's demand for insulin the demand for gasoline the demand for tickets in New York City when the Mets or Yankees are...

• Determinants of the price elasticity of demand Consider some determinants of the price elasticity of...

Determinants of the price elasticity of demand Consider some determinants of the price elasticity of demand: The availability of close substitutes . Whether the good is a necessity or a luxury How broadly you define the market . The time horizon being considered A good with many close substitutes is likely to have relatively _______  demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises A good's price elasticity of demand depends in part on how necessary...

• 9. Determinants of the price elasticity of demand Consider some determinants of the price elasticity of...

9. Determinants of the price elasticity of demand Consider some determinants of the price elasticity of demand: The availability of close substitutes Whether the good is a necessity or a luxury How broadly you define the market . The time horizon being considered A good with many close substitutes is likely to have relatively _______  demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises. A good's price elasticity of demand depends in part on how necessary...

• The time horizon of the demand curve is one determinant of the price elasticity of demand...

The time horizon of the demand curve is one determinant of the price elasticity of demand Other things being equal, the demand for natural gas will tend to be elastic in the long run than in the short run. more 2. Time horizon and elasticity no more nor less The time horizon of the demand curve is one determinant of the priclessd. Other things being equal, the demand for natural gas will tend to be ▼ elastic in the long...