4 years ago

How does the existence of substitutes affect the price elasticity of demand?

1 answer:

8 0

The price elasticity of demand (PED) is a calculation of how much the measure demanded changes with a change in price. When there is accessibility of substitute goods, the more probable substitutes there are for a given good or service, the greater the elasticity. When some close substitutes are accessible or available, consumers can easily change from one good to another even if there is only a small change in price. On the other hand, if no substitutes are available, demand for a good is more likely to be inelastic.

You might be interested in

When a hurricane rips through florida, the price of oranges rises because the:

antoniya [11.8K]

When a hurricane rips through Florida, the price of oranges rises because the: supply curve shifts to left. Correct answer: C

The supply curve represents that the higher the price (all other things constant) the larger the quantity supplied. Shift of the position of the supply curve depends on several factors like change in costs, change in labour or raw material costs. In our case, the hurricane results in increase of the price of the oranges and decrease in the quantity of oranges supplied. (the curve shifts left).

7 0

4 years ago

the ale price if a pair of jeans is $50 . the original price was $65 . calculate the decrease to determine the percent taken off

irina1246 [14]

I think this is the answer