The price elasticity of demand is based on the
A) number of sellers and the competitive environment.
B) number of consumers and the competitive environment.
C) availability of substitutes and the urgency of need.
D) availability of complements and the urgency of need.

Question

Quizplus · Accepted Answer

The price elasticity of demand is primarily influenced by the availability of substitutes (if there are many substitutes, demand is more elastic) and the urgency of need (if a product is a necessity, demand is less elastic).

The Price Elasticity of Demand Is Based on the