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Name three factors that determine a good’s or service’s elasticity.

User Timmah
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Answer:

Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price.

Step-by-step explanation:

User Jeremy Whitlock
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1 vote

Answer:

(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.

User Sachihiro
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