Economy, asked by anshulab2407, 8 months ago

Discuss the various factors that influences the price elasticity of demand

Answers

Answered by VIGYAS

Answer:

Nature of Goods:

Refers to one of the most important factors of determining the price elasticity of demand.

In economics goods are classified into three categories, namely, necessities (or essential goods), comforts, and luxuries.

Generally, the demand L essential goods, such as salt, sugar, match boxes, and soap, is relatively inelastic (less than unity) or perfectly inelastic

Answered by Lovlover2111

Nature of commodity: Elasticity of demand of a commodity is influenced by its nature
Availability of substitutes
Income Level
Level of price
Postponement of Consumption
Number of Uses
Share in Total Expenditure
Time Period

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