Which of the following is assumed to be constant while calculating the price elasticity of demand?
A)the price of the product itself
B)the quantity demanded of the product
C)total revenue received from the sale of the product
D)the prices of all other products
E)the cost of production

Question

Quizplus · Accepted Answer

When calculating price elasticity of demand, all factors except the price of the product itself should be assumed constant. This includes the prices of all other products, the quantity demanded of the product, total revenue received from the sale of the product, and the cost of production.

Which of the Following Is Assumed to Be Constant While