Which of the following factors does NOT directly affect the elasticity of demand?
A) the other uses of a product
B) the inputs needed to manufacture the product
C) the availability of substitute goods
D) the price relative to a consumer's purchasing power
E) a product's durability

Question

Quizplus · Accepted Answer

The inputs needed to manufacture a product do not directly affect the elasticity of demand. Elasticity of demand depends on how responsive consumers are to changes in price, which is influenced by factors such as availability of substitutes, consumer purchasing power, and durability of the product. The other uses of a product can also affect elasticity, as it may reduce or enhance the need for the product or create alternative uses for it.

Which of the Following Factors Does NOT Directly Affect the Elasticity