Question

explain any 3 factors afecting the price elasticity of demand

Answer 1

Factors affecting the price elasticity of demand are :-

❥ The number of close substitutes - The more close substitutes there are in the market , the more elastic is demand because consumers find it easy to switch .

❥ The cost of switching between products - There may be costs involved in switching . In this case , demand tends to be inelastic .

❥ The proportion of a consumer's income allocated to spending on the good - Products that take up a high percentage of income will have a more elastic demand .

Hope it helps ya ❤️

Answer 2

◦•●◉✿ The number of close substitutions

The cost of switching between products

The proportion of the consumers income allocated to spending on the good ✿◉●•◦