Factors determining elasticity of demand, Managerial Economics

Factors determining Elasticity of demand

  1. Ease of substitution.
  2. Nature of the commodity i.e. whether it is a necessity of life, luxury or addictive.
  3. Consumers income.
  4. The number of uses to which the good can be put.
  5. Time factor.
  6. The prices of other products.
  7. Advertisements especially the persuasive ones.
  8. Whether the use for the good can be postponed.
  9. Human and economic constraints.
Posted Date: 11/27/2012 6:35:22 AM | Location : United States







Related Discussions:- Factors determining elasticity of demand, Assignment Help, Ask Question on Factors determining elasticity of demand, Get Answer, Expert's Help, Factors determining elasticity of demand Discussions

Write discussion on Factors determining elasticity of demand
Your posts are moderated
Related Questions
Determine the Income Effect of law of demand As a result of fall in the price of a commodity, real income of its consumer increase at least in terms of this commodity. Or we c

National Income National Income is a measure of the money value of goods and services becoming available to a nation from economic activities. It can also be defined as the to

The neo-classical view The neo-classical view is that market forces are the best directors of the economy.  Positive attempts by the government it is argued inevitably make th

Weapons of Conflict The trade unions and the employers (or their associations) have many ways of enforcing their demands on each other.   They include: Strikes:  The stri

Prices of the factors of production As the prices of those factors of production used intensively by X producers rise, so do the firms' costs. This cause supply to fall as some

The demand curve for the product of a monopolist is a straight line such that quantity just falls to zero at a price of Rs 20 per unit and that the maximum quantity (at zero price)

Peanut butter monopolist Calvé supplies peanut butter to Albert Heijn in an isolated village. The supermarket is a monopolist in the village. Demand for peanut butter is given by:

Singapore Airlines  is facing the possibility of a new competitor " Qantas " to enter the Singaporean market, especially in premium market, Singapore Airlines is dominant on the ma

Gold Although currently no country uses gold as its national currency, gold has a long history of use as commodity money and has almost universal acceptability.  Gold is still

Appropriate Management of Sales: Demand forecasts are made area wise and after that sales targets for various areas are set in view of that. This helps the calculation of sales pe