ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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because other fruits are available
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because fruits cannot be substituted
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because fruits are inexpensive
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because fruits are expensive
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Detailed explanation-1: -Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price.
Detailed explanation-2: -Supply could be elastic for the following reasons In the long run, supply will be more elastic because capital can be varied. If it is easy to employ more factors of production. If a product can be sold from the internet which increases the scope of international competition and increases options for supply.
Detailed explanation-3: -The number of competitors is a factor. An increase in the number of suppliers makes the price of a product or service more elastic. If one supplier can’t meet demand, others will rush to fill the gap. Flexibility is a big factor.
Detailed explanation-4: -A product is considered to be elastic if the quantity demand of the product changes more than proportionally when its price increases or decreases. Conversely, a product is considered to be inelastic if the quantity demand of the product changes very little when its price fluctuates.