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    Determinants of elasticity

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    What type of elasticity (elastic, inelastic, zero, etc.) do you think milk has based on the major determinants of elasticity. Explain. Be sure to state the major determinants of elasticity.

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    Elasticity: What type of elasticity (elastic, inelastic, zero, etc.) do you think milk has based on the major determinants of elasticity. Explain. Be sure to state the major determinants of elasticity.
    The determinants of elasticity of demand for milk are:
    Availability of substitutes: The elasticity of demand would increase as the number of substitutes increases. Milk does not have many very close substitutes. The distant substitutes for milk could be other beverages such as juices, soda, coke, etc. On this parameter, demand would be inelastic. ...

    Solution Summary

    The expert lists the major determinants of elasticity of demand for milk.

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