Price Elasticity of Demand Is Determined by a Number of Factors

question 78

Multiple Choice

Price elasticity of demand is determined by a number of factors such as the availability of substitutes,the cash outlay of purchase relative to a person's disposable income,and

• A)the stage of the product or service in its product life cycle.
• B)the degree of carrying costs for the manufacturer or distributor.
• C)the financial resources of the organization itself.
• D)the ability of the organization to meet sudden increases in demand.
• E)the necessity of the product or service.

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Definitions:

Economic Effects

The impact of economic activities and policies on the overall condition of the economy, including effects on growth, inflation, and employment.

Government Price Supports

Programs or policies implemented by a government to maintain the market price of a good or service at a certain level.

Farmers' Income

The earnings obtained by farmers for their labor and investment in agricultural activities, which can fluctuate significantly due to market and environmental conditions.

Agribusiness

The business sector encompassing farming and farming-related commercial activities, involving the production, distribution, and marketing of agricultural goods.