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WAEC Economics 2005 Question 19

Question 19

Elasticity

One of the factors determining price elasticity of demand for a commodity is the

  1. A.availability of close substitutes
  2. B.number of producers
  3. C.government policy
  4. D.price of other commodities.
Show the answer and explanation

Answer: A (availability of close substitutes)

Explanation

The more close substitutes a good has, the more elastic its demand.