The price elasticity of demand for a good is influenced by which of the following factors?
A) the responsiveness to changes in income
B) the cost of resources to produce the good
C) the availability of substitutes
D) the level of competition among sellers
E) the number of uses for the good

Question

Quizplus · Accepted Answer

The price elasticity of demand is influenced by the availability of substitutes because if there are more substitutes available, consumers can easily switch to another product if the price of the good increases, making the demand more elastic.

The Price Elasticity of Demand for a Good Is Influenced