The Important Determinants of the Price Elasticity of Demand Are

question 18

Multiple Choice

The important determinants of the price elasticity of demand are the

• A) number and closeness of available substitutes, importance in consumers' budgets, and length of the time period.
• B) number of markets, size of buyers' incomes, and empirical validity.
• C) number of firms, number of variables that must be held constant, and degree to which markets are separable.
• D) scope and method of measurement and calculation and transitivity of preferences.
• E) state of technology, size of the firm's plants, and size of the absolute change in input prices and quantity.

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Definitions:

Self-perception Theory

A psychological theory proposing that individuals infer their own attitudes and emotions by observing their behavior and the context in which it occurs.

Central Proposition

A fundamental principle or idea that is central to and supports a theory, argument, or belief system.

Personalities

The combination of characteristics or qualities forming an individual's distinctive character, often influencing their behavior and reactions.

Situation

The set of environmental and contextual factors present at a certain time and location.