Major Determinants of Price Elasticity of Demand?


Price elasticity refers to how much price increases will affect demand. If something is highly price-elastic, when the price goes up, the demand goes down. If something is price-inelastic, the demand doesn't go down, even when the price goes up a lot. Gas is a common example of something which is price-inelastic. You need gas, so even if gas gets very expensive, you're just going to bite the bullet and buy it. But if we're talking about something like martian popping thingies, these are probably pretty price-elastic. You don't really need one, so you won't spend a lot of money on one.
Q&A Related to "Major Determinants of Price Elasticity of Demand..."
Essential or non-essential good, Availability of substitutes, Time. when large numbers of close substitutes exist demand for that product tends to be elastic as consumers have alternatives
Price elasticity of demand is how much demand changes for a product in relationship to a change in price. This change in measured as a percentage.
determinant is how badly the consumer wants the good - whether it satisfies a basic need, and whether there are substitutes. Toothpaste in general would be most inelastic, since you
Elasticity is the responsiveness of demand to a change in price. You can figure out the PED (price elasticity of demand) with the following formula; % change in quantity demanded/
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Price elasticity of demand is also called a PED and refers to how the quantity demanded of a service or good can help determine a change in price. The PED also ...
The four determinants of price elasticity of demand include the availability of substitute goods and percentage of income. Necessity and duration are also determinants ...
Price elasticity of demand is important because it determines how much the price of a product can change before the demand fluctuates. If the price goes down, ...
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