Factors-price elasticity of demand


There are four factors which affect the price elasticity of demand:

a) The availability of substitutes.

b) The specific nature of the good.

c) The part of income spent on the good.

d) The time consumers have to buy the good.

In a 2 to 4 paragraph, describe the given:

Select a product you have purchased in the past month from a clothing or shoe store. Explain how each of the four factors contributed to the elasticity of the good. Is the product considered elastic, inelastic or unitary elastic. In a few sentences, what effect does the present supply and present demand have on this product? 

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Microeconomics: Factors-price elasticity of demand
Reference No:- TGS021307

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