The degree of price elasticity is based upon _____.
A)urgency of need and availability of substitutes
B)shopping orientation and market size
C)size of economic shoppers and economic conditions
D)inflation and age of target market

Question

Quizplus · Accepted Answer

The degree of price elasticity is determined by the urgency of need and the availability of substitutes. If a product has a lot of substitutes and the need for it is not urgent, then consumers are likely to be more price-sensitive and the demand will be more elastic. Conversely, if a product has few substitutes and the need for it is urgent, consumers are likely to be less price-sensitive and the demand will be more inelastic.

The Degree of Price Elasticity Is Based Upon _____