Law of Elasticity · UPSC CDS/OTA · Question 1 of 30

Law of Elasticity – Question 1

Step-by-step solution. Law of Elasticity for UPSC CDS/OTA.

Topic
Law of Elasticity
Subject
General Studies
Difficulty
Medium
Solve Time
45–60 sec

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Q · Law of ElasticityMedium · 45s

Which of the following factors determines the price elasticity of demand for a commodity? 1. Availability of substitutes 2. Nature of the commodity 3. Proportion of income spent on the commodity 4. Time period Select the correct answer using the code below:

TopicLaw of Elasticity
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min

Step-by-Step Solution

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Price elasticity depends on the availability of substitutes, the nature (necessity vs luxury), proportion of income, and time horizon for adjustment.

Final Answer: Option C — 1, 2, 3 and 4
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Law of Elasticity Question 1 – UPSC CDS/OTA