What influence the own price elasticity of demand

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Reference no: EM13846988 , Length: word count:1500

Assignment Question

Explain why each of the following factors may influence the own price elasticity of demand for a commodity.

1. Consumer Preferences: that is, whether consumers regard the commodity as a ‘luxury' or ‘necessity'.

2. The narrowness of the definition of the commodity.

3. The length of the period under consideration.

4. The availability of substitutes for the commodity

Reference no: EM13846988

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