Which of the following factors would NOT affect the own price elasticity of a good?
A) Time
B) Price of an input
C) Available substitutes
D) Expenditure share

Question

Quizplus · Accepted Answer

Price of an input would not directly affect the own price elasticity of a good. Own price elasticity of a good is determined by how consumers respond to changes in the price of the good itself, not by the cost of producing the good. The other factors listed (time, available substitutes, expenditure share) can all influence consumers' responsiveness to a change in price, and therefore affect the own price elasticity of a good.

Which of the Following Factors Would NOT Affect the Own