determinants of elasticity of demand

Question 1

what is the 1st determinant of elasticity of demand?

Answer 1

Time period- the longer the time under consideration the more elastic a good is likely to be

Question 2

what is the 2st determinant of elasticity of demand?

Answer 2

number and closeness of substitutes- the greater the number of substitutes the more elastic

Question 3

what is the 3rd determinant of elasticity of demand?

Answer 3

proportion of income- the smaller the proportion taken up by a product the more inelastic

Question 4

what is the 4th determinant of elasticity of demand?

Answer 4

luxury or necessity- holidays are a luxury but food is a necessity

Question 5

what is the 5th determinant of elasticity of demand?

Answer 5

habit forming- e.g. addictive drugs (nicotine, alcohol)