Factors affecting the price elasticity of demand include all of these except:

a. percentage of the consumer's budget

b. the availability and closeness of substitutes

c. positioning as income inferior

d. time period of adjustment

e. all of the above affect the price elasticity of demand

• The correct answer is c. positioning as income inferior.

The price elasticity of demand of a product or service has different determinants. Among the most common are the percentage of consumers' income used to purchase the good or service, the higher the percentage, the higher the price elasticity of demand. Another important determinant is the number of substitutes. If a product or service has many close substitutes the price elasticity of demand will be very high. Additionally, the time period between price changes is also a very important factor that affects the price elasticity of demand. The longer the time period, the higher the price elasticity of demand because consumers have more chances to look for new products. Therefore, the factor that does not influence the price elasticity of demand of a product or service is option c. positioning as income inferior. The classification of inferior goods is mostly related to the income elasticity of demand.