Which of the following does NOT influence the price elasticity of demand?
A) the amount by which the demand curve shifts when the price of another good changes
B) the number of substitutes available to consumers
C) the price of the good relative to total income
D) the time period buyers have to respond to a price change
E) whether the good is a necessity or a luxury

Question

Quizplus · Accepted Answer

The amount by which the demand curve shifts when the price of another good changes is referring to the cross-price elasticity of demand, which is a measure of how much the quantity demanded of one good changes in response to a change in the price of another good. It is not directly related to the price elasticity of demand.

Which of the Following Does NOT Influence the Price Elasticity