Asked by Madeline Boutot on Jun 25, 2024
Verified
List the four determinants of price elasticity of demand.
Price Elasticity of Demand
An index showing the extent to which demand for a product changes in reaction to a variation in its price, where an elasticity exceeding one signifies a strong response.
Determinants
Factors or elements that contribute to producing a particular result or outcome.
- Uncover the factors that dictate the price elasticity of demand.
Verified Answer
AB
Andrea ByrnesJun 27, 2024
Final Answer :
The four determinants are (1)substitutability, (2)proportion of income, (3)luxuries versus necessities, and (4)time.
Learning Objectives
- Uncover the factors that dictate the price elasticity of demand.
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