Question

state any two factors affecting demand with two three lines explanation​

Answer 1

Answer

Two factors affecting the price elasticity of demand:

1) Nature of commodity: Necessaries have less than unitary elastic demand whereas, luxuries have more than unitary elastic demand.

2) Availability of substitutes: Demand for goods which have close substitutes is relatively more elastic. Goods without close substitutes are generally found to be less elastic in demand.