1. Availability of close substitutes - the more the substitutes are and close they are the more price elastic demand a commodity will be.
2. Number of uses of a commodity - the greater the number of uses of a commodity the greater the quantity demanded will tend to be inelastic.
3. Length of adjustment time - in the short run demand is likely to be inelastic while in long run it is likely to be elastic because it takes time for consumers to adjust their purchases.
4. Extent to which a commodity is habitual - the more a commodity is habitual the more the demand will be price inelastic.
5. The proportion of consumer's income spent on a commodity - whether proportion is very small or little, such as for salt, quantity demanded of a commodity will tend to be inelastic. If the proportion is large as in case of food, demand will tend to be elastic
Jonmhumble answered the question on October 22, 2017 at 19:39
- State and explain types of income elasticity of demand(Solved)
State and explain types of income elasticity of demand.
Date posted: October 22, 2017. Answers (1)
- Explain the importance of planning in an organization(Solved)
Explain the importance of planning in an organization.
Date posted: October 22, 2017. Answers (1)
- State and explain characteristics of monopoly type of market(Solved)
State and explain characteristics of monopoly type of market.
Date posted: October 22, 2017. Answers (1)
- Outline advantages of free enterprise economic system(Solved)
Outline advantages of free enterprise economic system.
Date posted: October 22, 2017. Answers (1)
- Outline the characteristics of centrally planned economic system(Solved)
Outline the characteristics of centrally planned economic system.
Date posted: October 22, 2017. Answers (1)
- Outline the challenges of young population.(Solved)
Outline the challenges of young population.
Date posted: October 21, 2017. Answers (1)
- Outline the problems associated with output approach as a way of measuring national income(Solved)
Outline the problems associated with output approach as a way of measuring national income
Date posted: October 21, 2017. Answers (1)
- What are the sources of monopoly power?(Solved)
What are the sources of monopoly power?
Date posted: October 21, 2017. Answers (1)
- State and explain the factors that causes changes in interest rates in an economy?(Solved)
State and explain the factors that causes changes in interest rates in an economy?
Date posted: October 20, 2017. Answers (1)
- State and explain the process of human resource planning(Solved)
State and explain the process of human resource planning
Date posted: October 20, 2017. Answers (1)
- Outline the characteristics of human resource management(Solved)
Outline the characteristics of human resource management
Date posted: October 20, 2017. Answers (1)
- Outline aims of human resource management(Solved)
Outline aims of human resource management
Date posted: October 20, 2017. Answers (1)
- What challenges is the government of Kenya facing currently pertaining unprecedented economy?(Solved)
What challenges is the government of Kenya facing currently pertaining unprecedented economy?
Date posted: October 19, 2017. Answers (1)
- What are the advantages of increasing population?(Solved)
Required to provide 5 advantages well explained
Date posted: October 18, 2017. Answers (1)
- What are the policies to improve agricultural sector?(Solved)
What are the policies to improve agricultural sector?
Date posted: October 18, 2017. Answers (1)
- State and explain the non- tariffs forms of protectionism(Solved)
Give 5 well explained poins
Date posted: October 18, 2017. Answers (1)
- What are the problems likely to be encountered by a country with ageing population?(Solved)
What are the problems likely to be encountered by a country with ageing population?
Date posted: October 18, 2017. Answers (1)
- Outline the advantages of private foreign investment(Solved)
Outline the advantages of private foreign investment
Date posted: October 18, 2017. Answers (1)
- List and explain factors that affect consumer sovereignty(Solved)
List and explain factors that affect consumer sovereignty
Date posted: October 18, 2017. Answers (1)
- List and explain the challenges faced in formulation of literature review(Solved)
Give 5 answers and explain briefly
Date posted: October 17, 2017. Answers (1)