Consider some determinants of the price elasticity of demand: • The availability of close substitutes • Whether the good is a necessity or a luxury • How broadly you define the market • The time horizon being considered A good without any close substitutes is likely to have relatively elastic ▼ demand, since consumers cannot easily switch to a substitute good if the price of the good rises.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Assignment 1 - Part 4 of 4 - Chapter 5 Questions
Consider some determinants of the price elasticity of demand:
• The availability of close substitutes
• Whether the good is a necessity or a luxury
• How broadly you define the market
• The time horizon being considered
A good without any close substitutes is likely to have relatively elastic
▼ demand, since consumers cannot easily switch to a substitute good if
the price of the good rises.
Transcribed Image Text:B Class 3 - ECON1001C Intro x * MindTap - Cengage Learnin x * MindTap - Cengage Learnir x y! carleton brightspace - Yaho x B Unit 2.1 Slic A Not secure ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=599297248878548653463891880&elSBN=978017 E Apps Favoris du domaine D Friv : ONLY THE VE... OZ Jorge Cruise's BBQ... BE Ref Centre - Course... A Disque 10 Agenda M Courriel CENGAGE MINDTAP Assignment 1 - Part 4 of 4 - Chapter 5 Questions Consider some determinants of the price elasticity of demand: • The availability of close substitutes • Whether the good is a necessity or a luxury • How broadly you define the market • The time horizon being considered A good without any close substitutes is likely to have relatively elastic ▼ demand, since consumers cannot easily switch to a substitute good if the price of the good rises.
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