Which of the following statements best describes the relationship between the price elasticity of demand and factors that affect it?

The price elasticity of demand measures how much the quantity demanded of a good changes when its price changes. Several factors influence this elasticity, including the availability of substitutes, the necessity of the good, and how much of a consumer's budget it takes up. For example, if the price of a specific brand of cereal rises, and there are many other cereal brands available, consumers will likely switch brands, making the demand for that cereal elastic. Conversely, if a product is a necessity, like medication, people will still buy it even if the price goes up, leading to inelastic demand. Understanding these factors helps businesses and policymakers predict how changes in price will affect overall sales.