Factors Determining Elasticities

Question 1

What factors determine PED?

Answer 1

1. Necessity
2. Substitutes
3. Durability
4. Addictiveness
5. Proportion of Income
6. Time

Question 2

What factors determine YED?

Answer 2

1. Nature of Good (e.g. inferior or normal)
2. Versatility
3. Time

Question 3

What factors determine XED?

Answer 3

1. Substitute/Complement
2. Strength of brand loyalty
3. Time

Question 4

What factors determine PES?

Answer 4

1. Time
2. Barriers to Entry
3. Spare Capacity
4. Level of Stock/Storage
5. Substitutability of Factors (of production)

Question 5

What factors determine WES?

Answer 5

1. Competitiveness of wages
2. qUalification Requirements
3. Number who already have qualifications
4. Time

Question 6

What factors determine WED?

Answer 6

1. Substitutability of factors of production
2. Proportion of total costs
3. PED of product (derived demand)
4. Time

Question 7

Acronym for determinants of PED

Answer 7

NSDAP (+T)

Question 8

Acronym for determinants of YED

Answer 8

NV (+T)

Question 9

Acronym for determinants of XED

Answer 9

SS (+T)

Question 10

Acronym for determinants of PES

Answer 10

TBSLS

Question 11

Acronym for WES

Answer 11

CqUNT

Question 12

Acronym for WED

Answer 12

SPP (+T)