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Question
Price elasticity of demand is not affected by ___________.
Price elasticity of demand is not affected by ___________.
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Solution
The correct option is B cost of production
solution:Price inelasticity shows that customers—and by extension, demand—are more tolerant to price changes. Therefore, firms that deal in inelastic goods or services can transfer the extra cost of production to their customers without adversely affecting the demand.
hence the correct option: C
solution:
Price inelasticity shows that customers—and by extension, demand—are more tolerant to price changes. Therefore, firms that deal in inelastic goods or services can transfer the extra cost of production to their customers without adversely affecting the demand.
hence the correct option: C
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