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 is

Question

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 is

Quizplus · Accepted Answer

The slope of the demand curve does not determine a good's price elasticity of demand. Price elasticity of demand depends on how consumers respond to changes in price, which is influenced by factors such as the time interval considered, the availability of substitutes, and the percentage of the consumer budget spent on the good. Luxury goods tend to have a more elastic demand because they are more discretionary purchases.

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