Question

explain the factors affecting the price elasticity of demand
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Answer 1

Answer:

Proportion of Income Spent on the Good:

The price-elasticity of demand for a good also depends on the proportion of their income the buyers spend on the good. If the buyers spend a small proportion of their income, then they would not considerably decrease their purchase of the good as its price increases.

Answer 2

The price-elasticity of demand for a good also depends on the proportion of their income the buyers spend on the good. If the buyers spend a small proportion of their income, then they would not considerably decrease their purchase of the good as its price increases.