ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Price relative to income
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Availability of substitutes
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Want vs. Need
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Long-term time period of purchasing
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Detailed explanation-1: -The cost of production cannot affect the elasticity of demand because it is considered a factor that affects the elasticity of supply. When the price of a particular product is increased, it will also increase its production cost.
Detailed explanation-2: -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-3: -Four types of elasticity are demand elasticity, income elasticity, cross elasticity, and price elasticity.
Detailed explanation-4: -So hence we can say that the coast elasticity of demand is not a type of elasticity of demand, hence a option is got it.