Question: 1. Identify the two types of costs that make up a product's total cost. A product's total cost is composed of total variable costs and total fixed costs.
2. What are the determinants of elasticity? The degree of consumer responsiveness to price changes-elasticity-is affected by such factors as
(1) availability of substitute or complementary goods,
(2) the classification of a good or service as a luxury or a necessity,
(3) the portion of a person's budget spent on an item, and
(4) the time perspective.