Price elasticity of demand is determined by a number of factors,such as whether the item is a luxury product or service,the necessity of the product or service,the cash outlay of purchase relative to a person's disposable income,and
A) the stage of the product or service in its product life cycle.
B) the degree of carrying costs for the manufacturer or distributor.
C) the availability of substitutes.
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 plays a significant role in determining the price elasticity of demand. If there are many substitutes available, consumers may be less likely to purchase a product if its price increases, making it more elastic. Conversely, if there are few or no substitutes, consumers may be more willing to pay a higher price, making it less elastic.

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