객관식
What factors determine the price elasticity of demand?
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4. Elasticity
Determinants of Price Elasticity of Demand
객관식
Which of the following is a key determinant of the price elasticity of demand for a good?
A
The aggregate supply in the economy
B
The unemployment rate
C
The availability of close substitutes
D
The level of government spending
검증된 단계별 안내1
Understand that the price elasticity of demand measures how much the quantity demanded of a good responds to a change in its price.
Recall that one of the main factors influencing price elasticity of demand is the availability of close substitutes, because if many substitutes exist, consumers can easily switch when the price changes, making demand more elastic.
Recognize that aggregate supply in the economy and the unemployment rate are macroeconomic variables that do not directly affect the price elasticity of demand for a specific good.
Note that the level of government spending is a fiscal policy variable and does not directly determine the price elasticity of demand for individual goods.
Conclude that among the options given, the availability of close substitutes is the key determinant of the price elasticity of demand.
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