A common determinant of both the price elasticity of demand and the price elasticity of supply for a product is _____
A)the availability of close substitutes for the product.
B)the proportion of the consumer's budget spent on the product.
C)the length of the adjustment period under consideration.
D)the additional cost of increasing production.
E)the availability of complements to the product.

Question

Quizplus · Accepted Answer

The length of the adjustment period under consideration affects both demand and supply elasticity, as it determines how quickly consumers and producers can respond to price changes.

A Common Determinant of Both the Price Elasticity of Demand