Which Will Not Be a Determinant of the Price Elasticity

question 40

Multiple Choice

Which will not be a determinant of the price elasticity of demand for an input?

• A)the price of the input
• B)the substitutability of other resources for the input
• C)the elasticity of demand for the product it produces
• D)the total cost of an input as a proportion of the total cost of producing units of output

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Definitions:

Price-sensitive

Referring to the degree to which the demand for a product or service is affected by changes in its price.

Penetration Pricing

A pricing strategy where the price of a new product is set artificially low in order to gain market share quickly.

Kindle Fire Tablet

A line of tablets designed and marketed by Amazon, known for its integration with Amazon's digital content offerings.

Penetration Pricing

A marketing strategy where a product is priced lower than the competition to attract customers and gain market share quickly.