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Outline the factors that affect price elasticity of demand.

      

Outline the factors that affect price elasticity of demand.

  

Answers


Winnie
Availability of substitutes - if substitutes are readily available, demand for the product is elastic. If no close substitutes are available, demand is inelastic

Proportion of consumers income spent on commodities - where proportion is small like toothpicks, demand is inelastic and where proportion is relatively large, demand is elastic

Number of uses of a product -the greater the uses, the greater the elasticity

The part played by the product to human life -necessities have less elastic demand like like flour while luxuries have more elastic demand
Wincate 1 answered the question on October 5, 2017 at 19:15


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