BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Determinants of Elasticity of Demand
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Nature of Commodity
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Substitute Goods
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Price of Commodity
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Use of Commodity
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Explanation:
Detailed explanation-1: -The four factors that affect price elasticity of demand are (1) availability of substitutes, (2) if the good is a luxury or a necessity, (3) the proportion of income spent on the good, and (4) how much time has elapsed since the time the price changed.
Detailed explanation-2: -Price elasticity of demand is the ratio of the percentage change in quantity demanded of a product to the percentage change in price. Economists employ it to understand how supply and demand change when a product’s price changes.
Detailed explanation-3: -Consumer’s Income. Price of Related Goods. Tastes and Preferences of Consumers. Consumer’s Expectations.
There is 1 question to complete.