JAMB Exam > JAMB Videos > Economics for JAMB > Factors Affecting Price Elasticity of Demand
Factors Affecting Price Elasticity of Demand Video Lecture | Economics for JAMB
|
162 videos|102 docs|66 tests
|
FAQs on Factors Affecting Price Elasticity of Demand Video Lecture - Economics for JAMB
| 1. What is price elasticity of demand and why is it important? |  |
Ans. Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. It is important because it helps businesses and policymakers understand how sensitive consumers are to changes in price. This information can be used to make pricing decisions, predict changes in demand, and assess the impact of taxes or subsidies on consumer behavior.
| 2. What are the factors that affect price elasticity of demand? | |
Ans. There are several factors that affect price elasticity of demand, including the availability of substitutes, the necessity of the product, the proportion of income spent on the product, the time period considered, and the habit-forming nature of the product. If a product has close substitutes, is a luxury item, consumes a small portion of income, has a long time period to adjust, or is habit-forming, its demand is likely to be more elastic.
| 3. How does the availability of substitutes affect price elasticity of demand? | |
Ans. The availability of substitutes is a key factor in determining the price elasticity of demand. When there are many close substitutes available for a product, consumers have more options to choose from. As a result, if the price of one product increases, consumers can easily switch to a substitute, leading to a higher price elasticity of demand. On the other hand, if there are few or no substitutes available, consumers have limited options and are more likely to continue purchasing the product even if its price increases, resulting in a lower price elasticity of demand.
| 4. Why does the proportion of income spent on a product affect price elasticity of demand? | |
Ans. The proportion of income spent on a product is an important factor in determining its price elasticity of demand. If a product represents a significant portion of a consumer's income, they are likely to be more sensitive to changes in its price. In such cases, even a small price increase can have a significant impact on the consumer's budget, leading to a higher price elasticity of demand. Conversely, if a product only represents a small fraction of a consumer's income, they may be less sensitive to changes in its price, resulting in a lower price elasticity of demand.
| 5. How does the time period considered affect price elasticity of demand? | |
Ans. The time period considered is another factor that affects price elasticity of demand. In the short run, consumers may have limited options to adjust their consumption patterns in response to a price change. Therefore, demand tends to be less elastic in the short run. However, in the long run, consumers have more time to find substitutes, change their preferences, or adjust their budgets, making demand more elastic. For example, if the price of a car increases, consumers may not immediately switch to other modes of transportation in the short run. But over time, they may opt for public transportation or carpooling, resulting in a higher price elasticity of demand.
About this Video
|
4.77/5 Rating |
|
Nov 22, 2024 Last updated |
Video Description: Factors Affecting Price Elasticity of Demand for JAMB 2024 is part of Economics for JAMB preparation.
The notes and questions for Factors Affecting Price Elasticity of Demand have been prepared according to the JAMB exam syllabus.
Information about Factors Affecting Price Elasticity of Demand covers all important topics for JAMB 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Factors Affecting Price Elasticity of Demand.
Introduction of Factors Affecting Price Elasticity of Demand in English is available as part of our Economics for JAMB for JAMB & Factors Affecting Price Elasticity of Demand in
Hindi for Economics for JAMB course. Download more important topics related with notes, lectures and mock test series for
JAMB Exam by signing up for free.
Description
Video Lecture & Questions for Factors Affecting Price Elasticity of Demand Video Lecture | Economics for JAMB - JAMB full syllabus preparation | Free video for JAMB exam to prepare for Economics for JAMB.
Information about Factors Affecting Price Elasticity of Demand
Here you can find the meaning of Factors Affecting Price Elasticity of Demand defined & explained in the simplest way possible.
Besides explaining types of Factors Affecting Price Elasticity of Demand theory, EduRev gives you an ample number of questions to practice Factors Affecting Price Elasticity of Demand tests,
examples and also practice JAMB tests.
|
162 videos|102 docs|66 tests
|
|
Explore Courses for JAMB exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
ppt
,Factors Affecting Price Elasticity of Demand Video Lecture | Economics for JAMB
,mock tests for examination
,Objective type Questions
,Important questions
,past year papers
,Viva Questions
,shortcuts and tricks
,Summary
,practice quizzes
,Sample Paper
,Factors Affecting Price Elasticity of Demand Video Lecture | Economics for JAMB
,study material
,Exam
,Semester Notes
,MCQs
,Extra Questions
,Previous Year Questions with Solutions
,Free
,video lectures
,Factors Affecting Price Elasticity of Demand Video Lecture | Economics for JAMB
;
Study Factors Affecting Price Elasticity of Demand on the App
Students of JAMB can study Factors Affecting Price Elasticity of Demand alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Factors Affecting Price Elasticity of Demand,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Factors Affecting Price Elasticity of Demand is prepared as per the latest JAMB syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup