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Unformatted text preview: of subsitutes are available which is likely to increase the elasticity of goods. c) Depends on the size relative to a persons budget - as there is a particular portion of the income which consumer devotes for purchasing goods, if the price of a particular goods increases then the demand of the same will decrease as the consumer still devotes a particular portion on the good. d) The more the good/service is a necessity - as availability of more substitutes will give more options to the consumer, at the change in price of one substitute the consumer will switch over to another product....
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- Spring '11