Which of the following is a determinant of price elasticity of demand in the market for laptop computers?

• A. The cost of production for laptop manufacturers
• B. The number of sellers in the laptop market
• C. The availability of close substitutes for laptop computers
• D. The level of government subsidies for laptop producers

Answer: (C)

Verified step by step guidance

1. Understand that the price elasticity of demand measures how much the quantity demanded of a good responds to a change in its price.
2. Recall that determinants of price elasticity of demand are factors that influence consumers' sensitivity to price changes.
3. Identify that factors related to consumers' choices, such as the availability of close substitutes, affect elasticity because if many substitutes exist, consumers can easily switch when price changes.
4. Recognize that factors related to production, such as cost of production, number of sellers, or government subsidies, affect supply rather than demand elasticity.
5. Conclude that among the options, the availability of close substitutes is a key determinant of the price elasticity of demand for laptop computers.