Which will not be a determinant of the price elasticity of demand for an input?
A)the price of the input
B)the substitutability of other resources for the input
C)the elasticity of demand for the product it produces
D)the total cost of an input as a proportion of the total cost of producing units of output

Question

Quizplus · Accepted Answer

The price of the input itself does not determine its price elasticity of demand. Price elasticity of demand for an input is influenced by factors such as the substitutability of other resources (B), the elasticity of demand for the product it produces (C), and the proportion of total cost represented by the input (D), rather than the input's own price.

Which Will Not Be a Determinant of the Price Elasticity