- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Topics in Demand and Supply Analysis
- Subject 2. Elasticities of Demand
CFA Practice Question
Factors that influence the elasticity of demand include all of the following except for ______.
II. closeness of substitutes
III. time elapsed since a price change
IV. proportion of income spent on the good
I. resource substitution possibilities
II. closeness of substitutes
III. time elapsed since a price change
IV. proportion of income spent on the good
Correct Answer: I only
User Contributed Comments 5
| User | Comment |
|---|---|
| Masterkang | A influences the elasticity of Supply |
| Khadria | Its RESOURCE substitution and not the GOOD substitution so it will affect the supplier and not directly the consumer. |
| TUFF | while consumers does not have direct power over resource substitution, they can only make their intent known through choice. |
| winniemao | It is a factor influencing elasticity of SUPPLY |
| sgossett86 | thanks candidates |