The price elasticity of demand for an item is impacted by:
A)whether or not the item is a necessity.
B)the time available to adjust to price changes.
C)the number of available substitutes.
D)all of these options.

Question

Quizplus · Accepted Answer

All of these options impact the price elasticity of demand. The necessity of the item determines how much consumers are willing to pay for it, the time available to adjust to price changes allows consumers to seek out alternatives or make adjustments in their budget, and the availability of substitutes gives consumers more options to choose from, thereby making the item more elastic.

The Price Elasticity of Demand for an Item Is Impacted