Which of the Following Is NOT a Determinant of the Price

question 391

Multiple Choice

Which of the following is NOT a determinant of the price elasticity of demand?

• A) Existence of substitutes
• B) Expenditures on the good as a share of a consumer's budget
• C) The amount of time allowed for adjustment to changes in the price of the commodity
• D) The price level in a country

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Definitions:

Corporate Farms

Agricultural businesses that own, and possibly operate, large-scale farming operations, often employing extensive capital and technology.

Price-Support Payments

Financial subsidies provided by the government to farmers or producers to ensure that the market price of a commodity remains above a certain level or to support the income of the producer.

"Read my Lips"

A famous phrase that often implies a strong promise or commitment, notably used by George H.W. Bush in his 1988 presidential campaign to assure no new taxes.

George H.W. Bush

The 41st President of the United States, serving from 1989 to 1993, known for his foreign policy leadership during the Gulf War and the end of the Cold War.