Price elasticity of demand is determined by a number of factors,such as the availability of substitutes,the necessity of the product or service,the cash outlay of purchase relative to a person's disposable income,and
A) whether the item is a luxury product or service.
B) the stage of the product or service in its product life cycle.
C) the degree of carrying costs for the manufacturer or distributor.
D) the financial resources of the organization itself.
E) the ability of the organization to meet sudden increases in demand.

Question

Quizplus · Accepted Answer

The availability of substitutes and whether the item is a luxury product or service are two of the main factors that determine price elasticity of demand. Luxury products or services are usually more price-sensitive, while products or services that have few or no substitutes are usually less price-sensitive.

Price Elasticity of Demand Is Determined by a Number of Factors,such