Question

factors determinig elasticity of demand​

Answer 1

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• Nature of commodity:
• Availability of substitutes:
• Income Level:
• Level of price:
• Postponement of Consumption:
• Number of Uses:
• Share in Total Expenditure:
• Time Period:

Answer 2

The elasticity of demand refers to the change of demand of the commodity in regarding the presence of its substitutes and its pricing.

EXPLANATION-

The elasticity of demand depends upon various factors and the nature of the commodity itself. The elasticity of demand is a state that the demand for commodity changes as per the market.

Factory determines the elasticity of demand -

• Nature of the commodity itself - The nature of the commodity impacts its elasticity of demand. For example- the Commodities that are a basic necessity like salt, sugar, flour, milk, bread, etc has its inelasticity of demand. Whereas, seasonal products have the elasticity in their demand.

• Substitute availability- The commodity we taking under consideration of its substitute availabilities also plays a huge role in making the elasticity of the demand.

Conclusion-

These can be the factors that may create the elasticity of the demand for a commodity.

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