1. Determinants of the price elasticity of demand Consider some determinants of the price elasticity of demand:-_________________________________________________________?The availability of close substitutes ?Whether the good is a necessity or a luxury?How broadly you define the market?The time horizon being consideredA good without any close substitution is likely to have relatively (elastic or in elastic) demand, since consumers cannot easily switch to a substitute good if the price of the good rises.A goods price elasticity of demand depends in part on how necessary it is relative to other goods. If the. Following goods are priced approximately the same, which one has more elastic demand? Amputation procedures for diabetic sufferers or a yacht?The price elasticity of demand for a good also depends on how you define the good.Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that falls in between.The price elasticity of demand is also affected by the given time horizon.Other things being equal, the demand for natural gas will tend to be ( less, more or no more no less) elastic in the short run than in the long run

demand, and which will have demand that falls in between. Categories Most Elastic In Between Least Elastic Wine O O O Merlot O O O Beverages O O