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What does the availability of many substitutes have on the elasticity of the demand for a good?
Demand is elastic
What else can I help you with?
What effect does the availability of many good substitutes have on the elasticity of demand for a good?
Demand is elastic
Factors of Elasticity of demand?
1- Availability of substitutes 2- Amount of income available to spend on the good 3- Time
How is the price elasticity of demand measured and what factors are considered in determining it?
The price elasticity of demand is measured by calculating the percentage change in quantity demanded in response to a percentage change in price. Factors considered in determining price elasticity of demand include the availability of substitutes, necessity of the good, and time period for adjustment.
If a good is a necessity with few substitutes then the price elasticity of demand will tend to be?
lower
What factors influence the demand for goods with elastic demand?
Factors that influence the demand for goods with elastic demand include the availability of substitutes, the necessity of the good, and the proportion of income spent on the good.
What is the cross elasticity of demand of demand of good Y forgood X?
The cross elasticity of demand measures how the quantity demanded of good Y responds to a change in the price of good X. It is calculated as the percentage change in the quantity demanded of good Y divided by the percentage change in the price of good X. A positive cross elasticity indicates that goods X and Y are substitutes, while a negative value suggests they are complements. If the elasticity is zero, it implies that the goods are unrelated.
Cross elasticity of demand?
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
What do you call a good whose income elasticity is less elasticity of demand?
A. Explain whether demand would tend to be more or less elastic for each of the following three determinants of elasticity demand.1. Availability of substitute goods2. Share of consumer income devoted to a good3. Consumer's time horizon
How do you calculate elasticity and what factors are considered in the calculation?
Elasticity is calculated by dividing the percentage change in quantity by the percentage change in price. Factors considered in the calculation include the availability of substitutes, necessity of the good, and time period under consideration.
What factors influence the shape of the market demand curve for a public good?
The shape of the market demand curve for a public good is influenced by factors such as the level of individuals' willingness to pay for the good, the number of people who benefit from the good, and the availability of substitutes for the good.
What are different types of elasticity?
The elasticity of demand refers to how sensitive the demand for a good is to changes in other economic variables. The different types are: price elasticity, income elasticity, cross elasticity and advertisement elasticity.
What is the difference between income elasticity demand and price elasticity demand?
price elasticity is the degree to which demand for a good will change relative to a change in the price of that good. Income elasticity is the degree to which demand for a good will change relative to a change in the spending power of the consumer. it is the percentage change in quantity demanded/percentage change in price.
