The narrowness of definition of the


Explain why each of the following factors may influence the own price elasticity of demand for a commodity.

(i) Consumer preferences, that is, whether consumers regard the commodity as a ‘luxury'' or a ‘necessity''.

(ii) The narrowness of definition of the commodity.

(iii) The length of the period under consideration.

(iv) The availability of substitutes for the commodity.

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Microeconomics: The narrowness of definition of the
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