The Determinants of Price Elasticity of Demand Include

question 55

Multiple Choice

The determinants of price elasticity of demand include:

• A) availability of substitutes, cost relative to benefit, and scope of market.
• B) degree of necessity, cost relative to income, scope of market, and adjustment time.
• C) availability of complements, cost relative to income, and scope of market.
• D) cost relative to income, scope of demand, and adjustment time.

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Definitions:

Operating Activity

Transactions that relate to the primary business operations, such as revenue from sales and expenses for materials and labor.

Supplies

Items used in the operation of a business that are not directly tied to the products or services offered, such as office supplies.

Accounts Payable

This refers to the amounts owed by a company for goods or services that have been received but not yet paid for.

Cash Dividends

Cash dividends refer to the distribution of a company's earnings to its shareholders, usually in the form of cash.