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Microeconomics and macroeconomics

KKopanang4y ago
The factors affecting price elasticity and do they affect it?
kengarrettkengarrettTutor4y ago#1
The main factors are: 1 Are the goods luxuries or necessities? Necessities are usually price inelastic. 2 If substitutes are available this will tend to make the goods price elastic. 3 Strong brands usually tend to be price inelastic. 4 Proporrion of income spent on the goods. If high, then the goods tend to be more price elastic.
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