The Most Important Determinant of the Price Elasticity of Demand

question 289

Multiple Choice

The most important determinant of the price elasticity of demand for a good is

• A)the definition of the market for a good.
• B)the availability of substitutes for the good.
• C)the share of the good in the consumer's budget.
• D)whether the good is a necessity or a luxury.

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Definitions:

High Correlation

A statistical measure indicating a strong relationship between two variables, where changes in one variable are closely linked to changes in the second.

Unconscious

Describes the part of the mind that is inaccessible to the conscious mind but that affects behaviors and feelings.

Traits

Enduring characteristics or qualities of an individual's personality that are consistent across different situations.

Personality Study

An area of psychology that focuses on understanding the variations in individuals' patterns of thought, feeling, and behavior.