Which of the following does not determine a good's price elasticity of demand?
A)the time interval considered
B)the number of substitutes available for the good
C)expenditure on the good as a percentage of the total consumer budget
D)the slope of the demand curve
E)the more of a luxury a particular good there is

Question

Quizplus · Accepted Answer

The slope of the demand curve indicates the magnitude of the change in quantity demanded in response to a change in price, but it does not determine the price elasticity of demand, which depends on factors such as the availability of substitutes, the proportion of income spent on the good, and the time horizon considered. A, B, C, and E are all determinants of price elasticity of demand.

Which of the Following Does Not Determine a Good's Price