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.

Question

Quizplus · Accepted Answer

The costs of production do not directly influence the price elasticity of demand. Elasticity is driven by consumer behavior and their responsiveness to changes in price and other factors that affect their decision to purchase a product. Factors such as availability of substitutes and the price of the item relative to the consumer's budget significantly impact elasticity.

Which of the Following Does Not Influence the Price Elasticity