Which of the following will affect a good's price elasticity of demand?
A) The income level of the consumer.
B) The price of complements.
C) The cost of the inputs used to produce the good.
D) The number of substitutes that the good has.

Question

Quizplus · Accepted Answer

The number of substitutes a good has affects its price elasticity of demand because more substitutes make demand more elastic, as consumers can easily switch to alternatives if the price rises.

Which of the Following Will Affect a Good's Price Elasticity