Factors Affecting Price Elasticity of Demand
a) Percentage of Income Spent on the commodity
A consumer is expected to be more responsive to a change in the cost of a good on which he spends a larger percentage of his income for instance car than to the similar change in the cost of a good on which he spends the small percentage of his income such as salt
b) Availability of Substitutes
If a good has number of substitutes, a consumer can switch to an alternative commodity if its price rises.
c) The Number of Uses for a commodity
The demand for a commodity with several uses will tend to be much more elastic than its demand for any other particular use.
d) Time Period
The longer the time period, the more will be the elasticity of demand.
Email based economics assignment help - homework help at TutorsGlobe
Are you searching accounting tutor for help with Factors affecting price elasticity questions? Factors affecting price elasticity topic is not easier to learn without external help? We at www.tutorsglobe.com offer finest service of economics assignment help and accounting homework help. Live tutors are available for 24x7 hours helping students in their Factors affecting price elasticity related problems. We provide step by step Factors affecting price elasticity question's answers with 100% plagiarism free content. We prepare quality content and notes for Factors affecting price elasticity topic under accounting theory and study material. These are avail for subscribed users and they can get advantages anytime.
Why TutorsGlobe for assignment help
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!