ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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availability of substitutes
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share of consumer’s budget spend on good
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duration of adjustment period
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government spending
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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: -Answer and Explanation: Technological improvements in production is not a determinant of demand.
Detailed explanation-3: -Population is not a determinant of a consumer’s demand for a commodity. Q. The determinants of demand include price, taste, price of substitutes, number of consumers, . Q.
Detailed explanation-4: -Factors that determine the elasticity of demand would be the availability of substitutes, the share of the good’s expense in individuals’ income, and the passage of time. More substitutes imply individuals have more choices and therefore consumers are more sensitive to price changes.