The price of the commodity
Availability of factors of production
The prices of factors of production
Income of the consumers
Explanation
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Discussions (17)
A because price elasticity for price, income elasticity for income. Elasticity of is the degree of responsiveness of change in demand to change in the deteeminant
It is price of demand. When calculating price elasticity of demand don't you use the price to calculate it?
is correct price elasticity can be determine when their is a change in consumer income. the price of commodity occure when d quantity supply change entirely on demand and vise versa.
A and D are both correct but d major determinant should be a bcos a change in d price of a certain commodity wil make a consumer to go for a close substitute
what is been asked here is concerning price elasticity of demand not income elasticity so i believe the answer should be A
The three major forms of elasticity are price elasticity of demand, cross-price elasticity of demand, and income elasticity of demand.
The four factors that affect price elasticity of demand are (1) availability of substitutes, (2) if the good is a luxury or a necessity, (3) the proportion of income spent on the good, and (4) how much time has elapsed since the time the price changed.
If income elasticity is positive, the good is normal. If income elasticity is negative, the good is inferior
The answer is D becuz elasticity of demand is determined by the income of the consumer that's why we have positive and negative income of elasticity of demand.
The selected answer is wrong:
price elasticity of demand means change in price of a commodity as a result of change in it price. So the right answer should be A
Option D is the correct answer because "Income of the consumers" is one the factors affecting elasticity of demand, among it are close substitutes, habit, nature of good etc.
Note: Price of the commodity affects quantity demanded and NOT elasticity itself.
