Which of the following does not influence the price elasticity of demand?
A)The availability of substitutes.
B)The price of the item relative to the consumer's budget.
C)Costs of production.
D)The length of time.

Question

Quizplus · Accepted Answer

The costs of production may affect the producer's decision to supply the good or service, but it does not directly affect the price elasticity of demand. The other options are factors that do impact the price elasticity of demand. Availability of substitutes, the price of the item relative to the consumer's budget, and the length of time all affect the degree to which consumers are able and willing to adjust their demand for the good or service in response to changes in price.

Which of the Following Does Not Influence the Price Elasticity