Question

Identify the factor, which generally keeps the price-elasticity of demand for a good low.

• A. Variety of uses for that good
• B. Its low price
• C. Close substitutes for that good
• D. High proportion of the consumer's income spent on it

Answer 1

The correct option is B Its low price

Generally very low price good have low price elasticity and varieties of uses, close substitute and higher proportion of consumer's income have more elasticity