The price elasticity of demand for widgets at any particular price is determined by
A)whether widgets are luxuries or necessities.
B)how much of their budgets do consumers spend on widgets.
C)whether there are any good substitutes for widgets.
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

All of the responses are correct. The elasticity of demand for a product is determined by various factors, including whether the product is a luxury or a necessity, the proportion of the consumer's budget spent on the product, and the availability of substitutes. Therefore, all the options are correct.

The Price Elasticity of Demand for Widgets at Any Particular