List the four determinants of price elasticity of demand.

Price Elasticity of Demand

An index showing the extent to which demand for a product changes in reaction to a variation in its price, where an elasticity exceeding one signifies a strong response.

Determinants

Factors or elements that contribute to producing a particular result or outcome.

Uncover the factors that dictate the price elasticity of demand.

Verified Answer

Andrea ByrnesJun 27, 2024

Final Answer :

The four determinants are (1)substitutability, (2)proportion of income, (3)luxuries versus necessities, and (4)time.

Learning Objectives

Uncover the factors that dictate the price elasticity of demand.

List the four determinants of price elasticity of demand.

Definitions

Learning Objectives

Learning Objectives

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