ECONOMICS
CONSUMERS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
availability of substitutes
|
|
|
percentage of consumer’s income spend on good
|
|
|
time to adjust spending behavior
|
|
|
government spending
|
Detailed explanation-1: -Answer and Explanation: Supply is not a determinant of price elasticity of demand as it does not concern the producers’ willingness to produce output but rather the consumers’ willingness to purchase outputs at a given price level.
Detailed explanation-2: -The four factors that affect price elasticity of demand are (1) availability of substitutes, (2) if the good is a luxury or a necessity, (3) the proportion of income spent on the good, and (4) how much time has elapsed since the time the price changed.
Detailed explanation-3: -Price is not a determinant of demand, thus a change in price does not cause demand to increase or decrease.
Detailed explanation-4: -Population is not a determinant of a consumer’s demand for a commodity.
Detailed explanation-5: -Nature or type of Good. The Elasticity of Demand for a good is affected by its nature. Availability of Substitutes. Price Level. Income Levels. Time Period. 11-Jan-2021