Which of the Following Is NOT a Determinant of the Price

question 405

Multiple Choice

Which of the following is NOT a determinant of the price elasticity of demand?

• A) the availability of potential substitutes
• B) the share of the budget spent on the item
• C) the time the consumer has to adjust to the price change
• D) the cost to produce the product

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Definitions:

Perfect Correlation

Describes a relationship between two variables where all data points lie exactly on a line with either a positive or negative slope; correlation coefficient is either 1 or -1.

Prediction

A statement about future events or outcomes based on current evidence or analysis.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables, assuming this relationship to be linear.

Regression Line

A line through a scatter plot of data points that best expresses the relationship between those points.