Which of the following factors does NOT affect the price elasticity of demand?
A. Cost of production of the commodity
B. Nature of the commodity (necessity or luxury)
C. Time period allowed for adjustment
D. Availability of close substitutes
Answer: Option A
Solution (By JKSSB Mock Tests)
The cost of production influences the supply side. Price elasticity of demand depends on substitutes, nature of the good, proportion of income spent, time and habits.
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