Which of the Following Would NOT Affect a Good's Price

question 242

Multiple Choice

Which of the following would NOT affect a good's price elasticity of demand?

• A) The ease of substitution between goods
• B) The cost of producing the good
• C) The number of substitute goods available
• D) The proportion of one's budget spent on an item

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Definitions:

Leisure

A period of free time not taken up by work, domestic responsibilities, or other obligatory tasks, often used for rest, recreation, or cultural activities.

Substitution Effect

The change in demand for a good or service caused by a change in its price, making consumers substitute it with another good or service.

Income Effect

The shift in income levels for either a person or the economy and its influence on the demand for specific goods or services.

Labor Supply

Refers to the total hours that workers are willing and able to work at a given wage rate.