Question

Elasticity of demand depends upon several factors.

Hint:

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

Answer 1

Agree:
Elasticity of demand measures the responsiveness of the quantity demanded to changes in price. It depends on several factors, including: 1. **Substitute Goods**: If there are close substitutes for a product, the demand is more elastic.
2. **Necessity vs Luxury**: Luxury goods tend to have more elastic demand compared to necessities.
3. **Time Period**: Demand is usually more elastic in the long run than in the short run.
4. **Proportion of Income**: If a good takes up a large portion of a consumer's income, the demand for it will be more elastic. Final Answer: \[ \boxed{Agree: \; Elasticity \; of \; demand \; depends \; on \; factors \; like \; availability \; of \; substitutes, \; necessity, \; and \; time.} \]