{"id":2241,"date":"2019-08-06T04:56:14","date_gmt":"2019-08-06T04:56:14","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2241"},"modified":"2019-08-06T04:56:14","modified_gmt":"2019-08-06T04:56:14","slug":"factors-affecting-price-elasticity-of-demand","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/","title":{"rendered":"FACTORS AFFECTING PRICE ELASTICITY OF DEMAND"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#PRICE_ELASTICITY_OF_DEMAND\" title=\"PRICE ELASTICITY OF DEMAND\">PRICE ELASTICITY OF DEMAND<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#FACTORS_AFFECTING_PRICE_ELASTICITY_OF_DEMAND\" title=\"FACTORS AFFECTING PRICE ELASTICITY OF DEMAND\">FACTORS AFFECTING PRICE ELASTICITY OF DEMAND<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#NATURE_OF_COMMODITY\" title=\"NATURE OF COMMODITY\">NATURE OF COMMODITY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#AVAILABILITY_OF_SUBSTITUTES\" title=\"AVAILABILITY OF SUBSTITUTES\">AVAILABILITY OF SUBSTITUTES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#ALTERNATIVE_OR_MULTIPLE_USES\" title=\"ALTERNATIVE OR MULTIPLE USES\">ALTERNATIVE OR MULTIPLE USES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#TIME_PERIOD\" title=\"TIME PERIOD\">TIME PERIOD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#INCOME_OF_CONSUMER\" title=\"INCOME OF CONSUMER\">INCOME OF CONSUMER<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#LEVEL_OF_PRICE\" title=\"LEVEL OF PRICE\">LEVEL OF PRICE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#STANDARD_OF_LIVING\" title=\"STANDARD OF LIVING\">STANDARD OF LIVING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#POSTPONEMENT_OF_USE_OF_COMMODITY\" title=\"POSTPONEMENT OF USE OF COMMODITY\">POSTPONEMENT OF USE OF COMMODITY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#HABITS_OF_CONSUMER\" title=\"HABITS OF CONSUMER\">HABITS OF CONSUMER<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#JOINT_DEMAND\" title=\"JOINT&nbsp; DEMAND\">JOINT&nbsp; DEMAND<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/#PROPORTION_OF_INCOME_SPENT_ON_A_COMMODITY\" title=\"PROPORTION OF INCOME SPENT ON A COMMODITY\">PROPORTION OF INCOME SPENT ON A COMMODITY<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"price-elasticity-of-demand\"><span class=\"ez-toc-section\" id=\"PRICE_ELASTICITY_OF_DEMAND\"><\/span>PRICE ELASTICITY OF DEMAND<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p class=\"has-medium-font-size\">Price&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/commerceiets.com\/elasticity-of-demand\/\" target=\"_blank\">Elasticity of demand<\/a>&nbsp;is the rate at which quantity purchased changes with the change in price. It is the ratio of percentage change in quantity demanded to percentage change in the price of the commodity, other Factors affecting Price Elasticity of Demand remaining the same.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>E<\/strong><sub><strong>d<\/strong><\/sub><strong>= (-) Percentage change in quantity demanded\/ Percentage change in pric<\/strong>e<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"factors-affecting-price-elasticity-of-demand\"><span class=\"ez-toc-section\" id=\"FACTORS_AFFECTING_PRICE_ELASTICITY_OF_DEMAND\"><\/span><strong>FACTORS AFFECTING PRICE ELASTICITY OF DEMAND<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The Factors affecting Price Elasticity of Demand are as follows:<\/p>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"nature-of-commodity\"><span class=\"ez-toc-section\" id=\"NATURE_OF_COMMODITY\"><\/span>NATURE OF COMMODITY<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Nature of the commodity is the most important factor that\naffects the price elasticity of demand. There are three types of commodities:\nNecessaries, Comforts and luxuries. Necessaries are those goods which are\nmandatory for survival of human being. Comforts are those which make our life\nsmooth and happy living. Luxuries are the goods considered as status symbol.\nThe price elasticity of demand of these three kinds of goods is:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>   NATURE OF GOODS   <\/strong><\/td><td><strong>   PRICE ELASTICITY OF DEMAND   <\/strong><\/td><\/tr><tr><td>\n  Necessaries\n  <\/td><td>\n  Less elastic\n  <\/td><\/tr><tr><td>\n  Comforts\n  <\/td><td>\n  Unitary elastic\n  <\/td><\/tr><tr><td>\n  Luxuries\n  <\/td><td>\n  Highly elastic\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"availability-of-substitutes\"><span class=\"ez-toc-section\" id=\"AVAILABILITY_OF_SUBSTITUTES\"><\/span>AVAILABILITY OF SUBSTITUTES<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Substitutes are those which can be used in place of one\nanother. Example: Tea and Coffee, Pepsi and Coke etc. The price elasticity in\ncase of availability of substitutes is:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  Easy Availability of Substitutes\n  <\/td><td>\n  Highly Elastic Demand\n  <\/td><\/tr><tr><td>\n  Less Substitutes Available\n  <\/td><td>\n  Less Elastic Demand\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"alternative-or-multiple-uses\"><span class=\"ez-toc-section\" id=\"ALTERNATIVE_OR_MULTIPLE_USES\"><\/span>ALTERNATIVE OR MULTIPLE USES<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">There are some commodities which can be used alternatively\nor these commodities have multiple uses like milk, coal etc. The demand for\nthese goods rises as the price falls and vice versa. The price elasticity of\ndemand in this case is as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  Goods having Multiple uses\n  <\/td><td>\n  Highly Elastic Demand\n  <\/td><\/tr><tr><td>\n  Goods having Single use\n  <\/td><td>\n  Less Elastic Demand\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"time-period\"><span class=\"ez-toc-section\" id=\"TIME_PERIOD\"><\/span>TIME PERIOD <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">In Economics, the time is divided into two horizons: Short\nPeriod and Long Period. The elasticity of demand is also get affected by the\nduration of time.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  Long time period\n  <\/td><td>\n  Highly elastic demand\n  <\/td><\/tr><tr><td>\n  Short time period\n  <\/td><td>\n  Less elastic demand\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"income-of-consumer\"><span class=\"ez-toc-section\" id=\"INCOME_OF_CONSUMER\"><\/span>INCOME OF CONSUMER<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Elasticity of demand for a commodity also depends upon the\nincome level of the consumers. If the buyers are high end consumers i.e. rich,\nthey will not care for the price. Accordingly, elasticity of demand is expected\nto be low. Example: Demand for cars by multi-billionaires. On the other hand,\nif income level of the buyers is low, elasticity of demand is expected to be\nhigh. Example: Demand for small cars by the middle class people in India.<\/p>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"level-of-price\"><span class=\"ez-toc-section\" id=\"LEVEL_OF_PRICE\"><\/span>LEVEL OF PRICE<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Elasticity of demand also depends upon the level of price of\nthe commodity. The commodities having the highest or lowest price carry less\nelasticity of demand. On the contrary, the commodities with medium ranged price\nhave highly elastic demand.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  High price\n  <\/td><td>\n  Less elastic demand\n  <\/td><\/tr><tr><td>\n  Medium price\n  <\/td><td>\n  Highly elastic demand\n  <\/td><\/tr><tr><td>\n  Low price\n  <\/td><td>\n  Less elastic demand\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"standard-of-living\"><span class=\"ez-toc-section\" id=\"STANDARD_OF_LIVING\"><\/span>STANDARD OF LIVING<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The society where the standard of living of the people is\nhigh, the elasticity of demand is low and where the standard of living is low,\nthe elasticity of demand is high.<\/p>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"postponement-of-use-of-commodity\"><span class=\"ez-toc-section\" id=\"POSTPONEMENT_OF_USE_OF_COMMODITY\"><\/span>POSTPONEMENT OF USE OF COMMODITY<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The commodities whose demand can be postponed in near future\nhave more elastic demand. Example: Demand for luxury furniture or car etc.\nWhereas for those goods whose demand cannot be postponed have less elastic or\ninelastic demand. Example: Demand for food.<\/p>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"habits-of-consumer\"><span class=\"ez-toc-section\" id=\"HABITS_OF_CONSUMER\"><\/span>HABITS OF CONSUMER<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Commodities which have become habits of consumer have\ninelastic demand because demand does not get affected by change in price.<\/p>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"joint-demand\"><span class=\"ez-toc-section\" id=\"JOINT_DEMAND\"><\/span>JOINT&nbsp; DEMAND<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">There are some commodities which are demanded jointly.\nExample: complementary goods like pen and ink, car and petrol. Elasticity of\ndemand for such goods is inelastic. &nbsp;<\/p>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"proportion-of-income-spent-on-a-commodity\"><span class=\"ez-toc-section\" id=\"PROPORTION_OF_INCOME_SPENT_ON_A_COMMODITY\"><\/span>PROPORTION OF INCOME SPENT ON A COMMODITY<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Goods on which consumer spend a small proportion of their\nincome like toothpaste, newspaper etc. will have an inelastic demand. On the\nother hand, goods on which the consumers spend a large proportion of their\nincome like clothes, scooter etc. tends to have elastic demand.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Briefly, goods with multiple uses, carrying a high price tag, and having a large number of close substitutes tend to show higher elasticity of demand than the goods which are low priced, are essentials of life and do not have close substitutes.\u00a0\u00a0 <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/demand\/\">Theory of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-demand\/\">Law of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/demand-function\/\">Demand Function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/\">Exceptions of law of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/elasticity-of-demand\/\">Elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/change-in-demand\/\">Change in demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/price-elasticity-of-demand\/\">Price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-law-of-demand-and-elasticity-of-demand\/\">Law of demand Vs Elasticity of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/\">Factors affecting price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/production-function\/\">Production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-short-run-long-run-production-function\/\">Short run vs long run production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-variable-proportions\/\">Law of variable proportions<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/types-of-demand\/\">Types of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/managerial-economics\/\">Managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/characteristics-of-managerial-economics\/\">Characteristics of managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-managerial-economics\/\">Scope of managerial economics<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/utility-analysis\/\">Utility analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-marginal-utility\/\">Law of diminishing marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-equi-marginal-utility\/\">Law of equi marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/\">Consumers Equilibrium<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/indifference-curve-analysis\/\">Indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium-using-indifference-curve-analysis\/\">Consumer equilibrium using indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-tp-ap-and-mp\/\">Relationship between TP, AP and MP<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-increasing-returns\/\">Law of increasing returns<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-returns\/\">Law of diminishing returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-constant-returns\/\">Law of constant returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/returns-to-scale\/\">Returns to Scale<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/economies-and-diseconomies-of-scale\/\">Economies and diseconomies of scale<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/concept-of-costs\/\">Concept of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-ac-and-mc\/\">Relationship between AC and MC<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/traditional-theory-of-cost\/\">Traditional theory of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/modern-theory-of-cost\/\">Modern theory of costs<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explicit-vs-implicit-costs\/\">Explicit vs Implicit costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue\/\">Revenue<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-competition\/\">Perfect competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-meaning\/\">Monopoly<\/a>&nbsp;<\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/price-discrimination\/\">Price discrimination<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-perfect-competition-and-monopoly\/\">Difference between perfect competition and monopoly<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-and-monopolistic-competition\/\">Perfect Vs Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-and-monopolistic-competition\/\">Monopoly and monopolistic competition<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/\">Product differentiation strategy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopolistic-competition\/\">Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/national-income-in-india\/\">National Income in India<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/measurement-of-national-income\/\">Measurement of national income in India<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/consumption-function\/\">Consumption function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/keynesian-psychological-law-of-consumption\/\">Keynes Psychological law of consumption<\/a><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"266\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg\" alt=\"FACTORS AFFECTING PRICE ELASTICITY OF DEMAND\" class=\"wp-image-787\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-300x78.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-768x199.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1536x398.jpg 1536w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>FACTORS AFFECTING PRICE ELASTICITY OF DEMAND<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>PRICE ELASTICITY OF DEMAND Price&nbsp;Elasticity of demand&nbsp;is the rate at which quantity purchased changes with the change in price. It is the ratio of percentage change in quantity demanded to percentage change in the price of the commodity, other Factors affecting Price Elasticity of Demand remaining the same. Ed= (-) Percentage change in quantity demanded\/&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;FACTORS AFFECTING PRICE ELASTICITY OF DEMAND&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2244,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[92],"tags":[123],"class_list":["post-2241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-micro-economics","tag-price-elasticity-of-demand"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2241"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2241"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2241\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2244"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}