ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Factor Mobility
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Adjustment Time Period
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Technology
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Type of Industry
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Detailed explanation-1: -Determinants of PES Supply elasticity depends on a number of factors: The time period. The substitutability of factors of production available to the firm. Level of spare capacity within the firm.
Detailed explanation-2: -Answer and Explanation: Supply is not a determinant of price elasticity of demand as it does not concern the producers’ willingness to produce output but rather the consumers’ willingness to purchase outputs at a given price level.
Detailed explanation-3: -Availability of substitutes, type or nature of a product, income, price, and time are the five known factors that affect the PED.
Detailed explanation-4: -Determinants of Elasticity of Supply Effortlessness of switching. Ease of storage. Length of the period of production. The time frame of training.