Asked by
Izabel Kerschen
on Oct 26, 2024
Verified
A major determinant of the price elasticity of demand is the availability of substitutes.
Price Elasticity of Demand
A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicative of the product's sensitivity to price changes.
Availability of Substitutes
The presence of alternative goods or services that consumers can switch to when prices rise or quality decreases, affecting market demand and competition.
- Recognize the aspects influencing the responsiveness of demand to price changes, including substitute availability.
Verified Answer
VW
Learning Objectives
- Recognize the aspects influencing the responsiveness of demand to price changes, including substitute availability.