Questions: 3. Which of the following is not a determinant of the price elasticity of demand for a good? a. Whether a good is a necessity or a luxury b. The flatness of the supply curve for the good c. The time horizon d. The definition of the market for the good

The answer is b. The flatness of the supply curve for the good

This is a determinant of the price elasticity of demand. Necessities tend to have inelastic demand because consumers will buy them regardless of price changes, while luxuries have more elastic demand as consumers can forego them if prices rise.

This is not a determinant of the price elasticity of demand. The elasticity of demand is concerned with how quantity demanded responds to price changes, not the characteristics of the supply curve.

This is a determinant of the price elasticity of demand. Demand tends to be more elastic over the long run because consumers have more time to adjust their behavior and find alternatives.

This is a determinant of the price elasticity of demand. A narrowly defined market (e.g., a specific brand) tends to have more elastic demand compared to a broadly defined market (e.g., all beverages), as there are more substitutes available in a narrowly defined market.