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What is an important influence on price elasticity of demand?A average earnings B tastes of consumersC the cost of living D the number of close substitutes |
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Answer» Answer: The FOUR factors that affect price elasticity of DEMAND are (1) availability of substitutes, (2) if the good is a luxury or a NECESSITY, (3) the proportion of income SPENT on the good, and (4) how much time has ELAPSED since the time the price changed. If income elasticity is positive, the good is normal. |
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