A Common Determinant of Both the Price Elasticity of Demand

question 17

Multiple Choice

A common determinant of both the price elasticity of demand and the price elasticity of supply for a product is:​

• A)the availability of close substitutes for the product.
• B)the proportion of the consumer's budget spent on the product.
• C)the length of the adjustment period considered.
• D)the additional cost of increasing production.
• E)the availability of substitutes in production for the product.

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Definitions:

Interest

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Promotion-to-Sales Ratio

A metric used to measure the effectiveness of a marketing campaign, calculated by dividing the cost of promotion by the sales generated.

Integrated Marketing Communications

A strategic marketing approach that coordinates all promotional activities (advertising, PR, sales promotion, social media) to provide a consistent message across all channels.

Marketing Dashboards

Tools that aggregate and display key marketing metrics and KPIs to monitor performance and support decision-making.