ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Factors that Influence the PES There are numerous factors that impact the price elasticity of supply including the number of producers, spare capacity, ease of switching, ease of storage, length of production period, time period of training, factor mobility, and how costs react.

Detailed explanation-2: -’Sanitary conditions’ is not a factor for determining the price elasticity of demand.

Detailed explanation-3: -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-4: -Luxury. Time period. Availability of substitutes. Necessity and demand of a commodity. The proportion of income spent on the good.