The Most Important Determinant of the Price Elasticity of Demand

question 289

Multiple Choice

The most important determinant of the price elasticity of demand for a good is

• A)the definition of the market for a good.
• B)the availability of substitutes for the good.
• C)the share of the good in the consumer's budget.
• D)whether the good is a necessity or a luxury.

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Definitions:

Duty Ethics

An ethical framework that emphasizes the importance of following a set of prescribed moral rules and duties in determining right action.

Deontology

A branch of ethics that judges the morality of actions based on rules, rather than consequences.

Ethics of Care

A philosophical approach that emphasizes interpersonal relationships and care or benevolence as a virtue.

Psychosomatic

Pertaining to or involving both the mind and the body, especially relating to the influence of emotions and psychological factors in physical illness.