Question

all of the following determine the price elasticity of demand except
a. the length of the time period.
b. the proportion of a persons budget spent on the good.
c. a change in the price of resources used to produce the good.
d. the existence of close substitutes.

Explanation:

To determine the answer, we analyze each option:

• Option A: The length of the time period affects price elasticity of demand (e.g., longer time allows more adjustment, more elastic).
• Option B: The proportion of budget spent on a good matters (e.g., a small proportion makes demand less elastic).
• Option C: A change in the price of resources used to produce the good affects the supply curve (cost of production), not the price elasticity of demand (which relates to how quantity demanded responds to price changes of the good itself).
• Option D: The existence of close substitutes makes demand more elastic (consumers can switch easily).

So the option that does not determine price elasticity of demand is C.

Answer:

C. a change in the price of resources used to produce the good.