(b) For each question analyse with an aid of diagram how the following factors could affect the price elasticity of demand: (i) Substitutes for the product (ii) The proportion of price relative to income, (ii) Whether the product is a luxurv or a necessity
(b) For each question analyse with an aid of diagram how the following factors could affect the price elasticity of demand: (i) Substitutes for the product (ii) The proportion of price relative to income, (ii) Whether the product is a luxurv or a necessity
Chapter1: Making Economics Decisions
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![(b) For each question analyse with an aid of diagram how the following factors could affect the price
elasticity of demand:
() Substitutes for the product
(1) The proportion of price relative to income.
(iii) Whether the product is a luxury or a necessity
(iv) The amount of time involved.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F390b7e7d-03b6-4a32-8b06-c02002519935%2F3f22b97d-74a4-4796-ab25-76c162cb1ec8%2Fb90uh7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b) For each question analyse with an aid of diagram how the following factors could affect the price
elasticity of demand:
() Substitutes for the product
(1) The proportion of price relative to income.
(iii) Whether the product is a luxury or a necessity
(iv) The amount of time involved.
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