The factors that determine the price elasticity of demand for a good are: substitute goods - if a good has many substitutes, a change in its price will have a major impact on its demand. Consumers will turn to the substitute goods instead of buying a good that suddenly has become more expensive. Oct 02, 2013 · The concept of price elasticity of demand is useful to a government if the government is setting prices for goods or services. A good example of this is the minimum wage.
Mar 27, 2013 · 1. The price elasticity of demand coefficient measures: A. buyer responsiveness to price changes. B. the extent to which a demand curve shifts as incomes change. C. the slope of the demand curve. D. h … read more