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Determinants of the Income Elasticity of the Demand:
The determinants of income elasticity of demand are given below:
Short Run and Long Run criteria:
Short run is the period in which not all factors can adjust fully and thus adjustment to shocks can only be partial.
Long run is the period over which all factors can be changed and full adjustment to shocks can happen.
Perfect competition: Perfect completion refers to the market structure in which there are a large number of relatively small firms, each firm having freedom of entry into and
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