Price elasticity is used in economics to determine the changes in price of goods and services. It measures the change in price demanded and quality supplied.

Determinants of price elasticity include the various factors like necessities availabilities of the products in the market size time and the definition of the market.

Necessities include the daily used goods which are necessary and the quantity demanded of those products is high.

Availability here defines the substitutes availability whether the goods and if the goods are not available in the market then its substitute is available or not so that a buyer can give more money and pay for it if it fulfills the satisfaction level.

The market size depends on the basis of the products and the requirements.

The timing is also a factor because if the buyer has a sufficient time and amount then he will go for the good market but if not then he will just buy it for the cause of buying.

Posted Date: 3/6/2013 12:02:07 AM | Location : United States

Ask an Expert

Related Discussions:- Define the price elasticity, Assignment Help, Ask Question on Define the price elasticity, Get Answer, Expert's Help, Define the price elasticity Discussions

Write discussion on Define the price elasticity
Your posts are moderated

Write your message here..

Related Questions

Concepts of economic development - economic growth, Normal 0 f... Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Jgjh, ffhgfhfh ffhgfhfh

What are the functions of money, Functions of Money Money performs sev... Functions of Money Money performs several important functions. It serves as a medium of exchange, a unit of account, a store of value and a standard of deferred payments. In a

Vitamin a, 1) Vitamin A Vitamin A has been chosen as the vitamin to be incl... 1) Vitamin A Vitamin A has been chosen as the vitamin to be included in the supplement since it has a role in several functions some of which as follows: 1. Helps in proper vision.

Determinants of private demand - gender , Determinants of Private Demand - ... Determinants of Private Demand - Gender Hypothetically, let us consider a family with two children, a boy and a girl. Let it be that both of them qualify in an entrance exami

Friedmans modern quantity theory, QUESTION 1 : What distinguishes Keynes... QUESTION 1 : What distinguishes Keynes' Liquidity preference Framework from Friedman's Modern Quantity Theory? QUESTION 2: Analyse the monetary policy tools that the Cen

Cropping pattern over time, Cropping Pattern Over Time: The dominance ... Cropping Pattern Over Time: The dominance of food crops and among food crops that of rice and wheat only states the existing cropping patterns. It is important to study the tr

Rational expectations- inflation unemployment trade-off , Rational Expectat... Rational Expectations- Inflation Unemployment Trade-off : Now, consider what happens if we suppose that workers have rational expectations about the rate of inflation First, th

#title.elasticity of demand., different btn elesticity of demand and inelas... different btn elesticity of demand and inelasticity of demand

Sources of economic growth, Sources of Economic growth: Human resourc... Sources of Economic growth: Human resources: Investment in human capital is considered as an important factor for economic growth. This is done by increasing the quality of