Attempts

Keep the Highest $/4$

$6.$ Determinants of price elasticity of demand

Consider some determinants of the price elasticity of demand:

The availability of substitutes

The market used to measure demand

The share of budget spent on the product

The time horizon being considered

A good without any close substitutes is likely to have relatively inelastic $-$ demand, because consumers cannot easily switch to a substitute g the price of the good rises.

The price elasticity of demand for a good also depends on how broadly the good is defined.

Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elas Jemand, and which will have a demand elasticity that falls in between.

$\backslash$table$[[$Categories$,$Most Elastic,In Between,Least Elastic$],[$Vegetables$,0,0,0],[$Food$,0,0,0],[$Red bell peppers,$0,,0]]$

ice elasticity for a good also depends on the share of a consumer's budget spent on a good.

her things being equal, which of the following goods has the most elastic demand?

Monthly cell phone bill

Thumbtacks

Fish food

price elasticity of demand is also affected by the given time horizon.

e price of gasoline is relatively high for a long time, consumers are more likely to buy fuel$-$efficient cars or switch to alternatives such as public sportation. Therefore, the demand for gasoline is

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