Explain thr factors affecting priceelasticityofdemand
Answers
Answered by
0
The factors affecting price elasticity of demand are.....
1 Nature of the commodity..( necessary commodity has elastic demand while luxurious are inelastic)
2 Avaibility of the substitute...( goods which have substitute are elastic)
3 Multiple uses....( multiple uses goods like milk are elastic in demand...)
4 Postponement of use....( uses which can be postponed are elastic like purchasing a land)
5 Income level of the buyer....( high class people conduct inelastic demand while low income having consumer are elastic)
6 Habit of the consumer....( commodity which we have addicted continue to use them no matter of what prices are)
7 Time period....( in short run demand is inelastic while in long run it is elastic)
1 Nature of the commodity..( necessary commodity has elastic demand while luxurious are inelastic)
2 Avaibility of the substitute...( goods which have substitute are elastic)
3 Multiple uses....( multiple uses goods like milk are elastic in demand...)
4 Postponement of use....( uses which can be postponed are elastic like purchasing a land)
5 Income level of the buyer....( high class people conduct inelastic demand while low income having consumer are elastic)
6 Habit of the consumer....( commodity which we have addicted continue to use them no matter of what prices are)
7 Time period....( in short run demand is inelastic while in long run it is elastic)
chavichavi:
u can ask more about it..... if u have any doubts
Similar questions