The Price Elasticity of Demand Depends on the

question 447

Multiple Choice

The price elasticity of demand depends on the

• A) proportion of consumers' budgets spent on the good.
• B) number of available substitutes.
• C) extent to which the commodity is a luxury.
• D) all of the above.

---

Definitions:

Standard Deviation

An indicator of the degree to which a dataset's values vary or are spread, showing the distance of the values from the average.

Probability

The measure or quantification of how likely an event is to occur, expressed as a number between 0 (impossible) and 1 (certain).

NORM.DIST

A function in statistics that returns the normal distribution for a specified mean and standard deviation.

Standard Error

The standard deviation of the sampling distribution of a statistic, often used to estimate the precision of a sample mean.