Which of the following is not a determinant of the price elasticity of demand for a good?

Which of the following is not a determinant of the price elasticity of demand for a good?

a. the time horizon

b. the steepness or flatness of the supply curve for the good

c. the definition of the market for the good

d. the availability of substitutes for the goods

Answer: b. the steepness or flatness of the supply curve for the good

The price elasticity of demand gives the magnitude of change in quantity demanded resulting from a price change. This concept has nothing to do, with the supply side, but is inversely proportional to the demand side factors. Key determinants include time as consumers take time in their search for substitutes in the long run; market definition since broader categories of goods have few substitutes; and availability of substitutes since it means demand is elastic. However, the inclination or lack of it in the supply curve (b) is a factor drawn from the supply side hence relevant in the determination of the price elasticity of supply not that of demand. This shows how sensitive the quantity supplied is to changes in price; which is different from the concept of demand elasticity.