Determinants of Price Elasticity

Question 1

1

Answer 1

Substitutes (more sub = more elas)

Question 2

2

Answer 2

Definition of the Market (more specific = more elas)

Question 3

3

Answer 3

Necessities vs Luxuries (can’t avoid buying what you need, but can dodge price hikes on what you don’t)

Question 4

4

Answer 4

Time Horizon (more time = more likely to escape)