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Four Factors that Influence the Price Elasticity of Demand

There are 4 factors that influence the price elasticity of demand:
- The availability of substitutes
- The specific nature of the good
- The part of income spent on the good
- The time consumers have to buy the good

Choose a product you have purchased in the past month from a clothing or shoe store.
Describe how each of the 4 factors contributed to the elasticity of the good.
Is the product considered elastic, inelastic, or unitary elastic?
What effect does the current supply and current demand have on this product?

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There are 4 factors that influence the price elasticity of demand:
- The availability of substitutes
- The specific nature of the good
- The part of income spent on the good
- The time consumers have to buy the good
Briefly discuss the following:
Choose a product you have purchased in the past month from a clothing or shoe store.
Describe how each of the 4 factors contributed to the elasticity of the good.
Is the product considered elastic, inelastic, or unitary elastic?
What effect does the current supply and current demand have on this product?

I recently went to the GAP and purchased a black shirt for about $50. There are many substitutes for black shirts from the GAP. For one, there are many other stores that sell black shirts. Some are better, some are comparable and ...

Solution Summary

The four factors that influence the price elasticity of demand are assessed.

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