Which is the most accurate statement?
A)The most important determinant of the degree of elasticity of demand is the availability of substitutes.
B)The demand for gasoline is very elastic.
C)The advertiser wants to push her product's demand curve to the right and make it more elastiC.
D)Supply is most elastic in the market period.

Question

Quizplus · Accepted Answer

The availability of substitutes is the primary determinant of the degree of elasticity of demand. If there are many substitutes available, consumers can easily switch to other products if the price of one of the products increases, making the demand for that product more elastic. If there are few substitutes available, consumers may continue to buy the product even if the price increases, making the demand for that product less elastic.

B is not accurate because the demand for gasoline is actually relatively inelastic because there are few substitutes available for it.

C is not accurate because an advertiser cannot directly affect the elasticity of demand for a product; they can only influence it indirectly by changing the factors that affect demand, such as price or consumer preferences.

D is not accurate because supply is not necessarily most elastic in the market period; it depends on the nature of the product and the availability of inputs.

Which Is the Most Accurate Statement