Demand sensitivity depends on all of the following except:
A) how low is the price of the good.
B) the sensitivity of firms' output to changes in its price.
C) the consumer's income.
D) the availability and closeness of substitutes.
E) the amount of time a consumer has to adjust to price changes.

Question

Quizplus · Accepted Answer

Demand sensitivity depends on all the options except the sensitivity of firms' output to changes in its price. This is because demand sensitivity is about how consumers react to changes in prices, not how firms react to changes in prices.

Demand Sensitivity Depends on All of the Following Except