ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Time is one of the factors that determine elasticity of demand. Buyers have demand for a good or service whenever they have enough money to purchase the item. A shift in demand is referred to as a change in quantity demanded.

Detailed explanation-2: -The price elasticity of demand varies directly with the time period. The given time period can be as shorts as a day and as long as several years. The price elasticity of demand is directly proportional to the time period. This means the elasticity for a shorter time period is always low or it can be even inelastic.

Detailed explanation-3: -Time plays a very important role in the determination of the price elasticity of supply.

Detailed explanation-4: -The price elasticity of demand is the percentage amount of a change in the quantity demanded resulting from a unit change in the price of a product. If the elasticity of demand is more than 1 in absolute terms, the demand is said to be elastic and if less than 1 in absolute terms, it is said to be inelastic.

Detailed explanation-5: -There are several factors that affect how elastic (or inelastic) the price elasticity of demand is, such as the availability of substitutes, the timeframe, the share of income, whether a good is a luxury vs. a necessity, and how narrowly the market is defined.