Elasticity and Tax - Elasticity : :,thegoodismore elastic NatureoftheItem: FractionofIncomeS

Elasticity and Tax - Elasticity : :,thegoodismore elastic...

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Elasticity: Price Elasticity of Demand:   the responsiveness of quantity demanded to a change in price. Availability of Substitutes:   If there are more substitutes for a product, the good is more  elastic Nature of the Item:   Goods that are necessities are inelastic and vice versa Fraction of Income Spent on the Item :  Expensive goods that take up a large portion of  people’s income tend to be more elastic   Amount of Time Available:   some goods become more elastic over time because  substitutes become available  Price Elasticity of Supply:   the responsiveness of quantity supplied to a change in price Time:   the longer the time period a seller has to increase production, the more elastic the  supply will be Ease of Storage:   when price of product drops, seller have two options:  they can sell at a
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