Question

"which determinants influence whether demand is elastic or inelastic?"

Answer 1

The determinants that influence whether a demand is elastic or inelastic are known as the determinants of demand. They include: consumer income, amount of money spent, nature of commodity, number of uses of commodity, whether demand can be postponed, existence of substitutes or alternative commodities, joint demand of complementary goods, and the range of prices of the commodity.

Answer 2

Answer:

necessities versus luxury goods

the existence of substitutes

Explanation:

Which determinants influence whether demand is elastic or inelastic? the products and services used by people in the consumers’ peer groups, advertising associated with the change in price, time and the adjustment process, necessities versus luxury goods, the share of the budget spent on the good, the existence of substitutes.

From the optoions you will recognize two that are definetly characteristic of the ability of a product to have an elastic or inelastic demand depending on two certain things, the ability of the market or the consumer to substitute that product for another one, and if it is a luxury or necessity, if it is a luxury most definetly will have an elastic demand, and if it is a necessity or it can´t be substituted it will have an inelastic demand.