Question

All of the following are determinants of demand elasticity EXCEPT a. whether the purchase of the product can be delayed b. whether there are adequate substitutes for the product. c. whether the purchase of the product requires a large portion of income. d. whether the product has utility.

Answer 1

Answer:

The correct answer is option d. whether the product has utility.

Explanation:

The demand elasticity is a concept that explains the elasticity of the consumer in terms of buying a product while its price rises.

All of the factors given in the question are a part of this concept except whether the product has utility.

The reason is that when a consumer buys something, the utility of that desire is not measured. If people have a high demand elasticity, they would buy the most priciest of things which have no utility  as such.