The Most Important Determinant of Price Elasticity of Demand Is

question 75

Multiple Choice

The most important determinant of price elasticity of demand is:

• A)the availability of substitutes.
• B)the higher the price of the good.
• C)the more of the budget is spent on the good.
• D)the longer the time the consumer has to adjust to price changes.

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Definitions:

Discount Period

The window of time in which a payment can be made at a reduced rate.

Welfare

Governmental support aimed at ensuring the basic physical and material well-being of individuals, often including provisions for health care, education, and housing.

Helping

The act of providing assistance or support to others in need, often motivated by empathy, moral obligations, or the anticipation of reciprocation.

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present.