Which factor generally keeps the price ndash elasticity of demand for a good low ........

Economics- Phase (I & II) Demand and Supply , Market Structures

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Which factor generally keeps the price – elasticity of demand for a good low:

Variety of uses for that good

Its low price

Close substitutes for that good

High proportion of the consumer’s income spent on it

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Explanation:

Lower the price of the good, the lower is its response to change in prices i.e. lower is the price elasticity. Demand of a commodity having very low price will not be effected with price fluctuations. The above explanation is due to the fact that a low priced commodity has a small place in consumer's budget.