Final answer:
a) How frequently sellers alter their prices, how sensitive buyers are to price differences among sellers, whether an item being purchased is a good or a service, and whether buyers purchase frequently or infrequently
The irrelevant factor in PESTEL analysis is related to specific market dynamics, unlike the comprehensive macro-environmental focus of PESTEL. Economists use the 'ceteris paribus' assumption to isolate individual variables.
Step-by-step explanation:
The factor not relevant in a PESTEL analysis is: How frequently sellers alter their prices, how sensitive buyers are to price differences among sellers, whether an item being purchased is a good or a service, and whether buyers purchase frequently or infrequently. PESTEL analysis consists of Political, Economic, Social, Technological, Environmental, and Legal factors. This particular factor pertains more closely to market dynamics and competitive strategies rather than the macro-environmental aspects that PESTEL focuses on.
Economists address the problem of multiple changing factors by using the ceteris paribus assumption. This means they analyze the economic impact of one variable while holding others constant. Factors affecting demand or supply curves are carefully considered, whether they cause a shift in demand due to changes in tastes, population, income, prices of substitutes or complements, and future expectations, or a shift in supply due to variations in input prices, natural conditions, technology, and government actions.