Which of the Following Will Affect a Good's Price Elasticity

question 98

Multiple Choice

Which of the following will affect a good's price elasticity of demand?

• A) The income level of the consumer.
• B) The price of complements.
• C) The cost of the inputs used to produce the good.
• D) The number of substitutes that the good has.

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Definitions:

Demand Options

Various strategies a company can use to manage or influence customer demand for its products or services.

ESOs

Stock options provided to employees within their salary package permit them to acquire shares in the company at a fixed price, serving as part of their overall compensation.

Company Stock

Equity shares issued by a company representing ownership interests, giving shareholders voting rights and a claim on the company’s profits in the form of dividends.