Question

factors affecting price elasticity of demand

Answer 1

few important determinants of price elasticity of demand:

1.nature of commodity:ordinarily necessary like okerosene oil ,Matchbox textbooks, seasonal, vegetables have an inelastic demand .luxury like Air Conditioner, costly furniture ,fashionable garments ,sector have elastic demand.
jointly demanded goods like bread and butter, pen and ink camera and film ordinarily show a moderate elasticity of demand .

2.availability of substitute :demand for good which has close substitutes like tea and coffee being close substitute to each other is relatively more elastic .because when price of such a good rises, the consumer have the option of shifting to it substitute .

3.multiple use :goods which can be put to multiple uses have elastic demand .electricity is an example of multiple uses.

4.income level of the buyer:elasticity of demand for a good also depends on the income level of its buyers.

5.habit of consumer :goods to which consumer become habit will have in inelastic demand .

6.price level :elasticity of demand also depends on the level of price of the commodity elastic demand is low at lower level of price of the commodity .

hope it's help u..

Answer 2

Answer:
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Factors affecting price elasticity of demand :
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• Nature of Goods
• Availability of substitutes
• Number of uses of a good
• Distribution of goods
• Level of price