PED & PES

Question 1

What are the factors of Price Elasticity of Demand?

Answer 1

PANT
Proportion of income - Higher proportion of income = More elastic
Availability of close substitutes - More substitutes available = More elastic
Necessity - The more essential of the good, the more inelastic
Time period -

Question 2

What are the factors of Price Elasticity of Supply?

Answer 2

GEM
Gestation Period - Shorter time required to produce good/Higher ability to speed up rate of production = More elastic
Excess capacity -
Mobility of factors of production -