Which of the following will NOT affect the elasticity of demand for a product?
A)the number of substitutes
B)how long consumers have to adapt to price changes
C)the cost of producing the product
D)the percentage of the consumer's budget spent on the product
E)all of the above will affect the elasticity of demand for a product

Question

Quizplus · Accepted Answer

The cost of producing the product will not affect the elasticity of demand. Elasticity of demand is determined by consumer behavior and how responsive they are to changes in price, availability of substitutes, and their budget constraints. Production costs are a factor in determining the price at which a product can be sold, but they do not directly affect consumer behavior.

Which of the Following Will NOT Affect the Elasticity of Demand