What is the most important factor affecting demand elasticity? A. Unimportance within the budget B. Availability of substitutes C. Time D. Classification as a basic necessity
Added by Grace A.
Close
Step 1
When there are many substitutes available for a product, consumers have more options to choose from, which makes the demand for that product more elastic. On the other hand, if there are limited substitutes available, the demand for the product is likely to be Show more…
Show all steps
Your feedback will help us improve your experience
Shalini Tyagi and 93 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Which of the following is not a type of elasticity of demand? a. cost elasticity of demand b: Price elasticity of demand c. Income elasticity of demand d. Cross elasticity of demand
Shalini T.
What measures the responsiveness of quantity demanded to a change in price? Select one: a. Total revenue. b. Equilibrium price. c. Price elasticity of demand. d. Income elasticity. e. Inelasticity
Andrew D.
What is the main factor that affects elasticity of supply and how does it affect elasticity?
Jennifer S.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD