ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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income level
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the number of producers in the market
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time to adjust
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the availability of substitute goods
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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: -Price is not a determinant of demand, thus a change in price does not cause demand to increase or decrease.
Detailed explanation-3: -Determinants of demand are factors that either positively or negatively affect demand in the market. The five determinants of demand are consumer taste, the number of buyers in the market, consumer income, the price of related goods, and consumer expectations.
Detailed explanation-4: -Answer and Explanation: The correct answer is b. the steepness or flatness of the supply curve for the good.
Detailed explanation-5: -Answer and Explanation: Income is not a determinant of supply.