{"id":90594,"date":"2025-06-01T10:31:40","date_gmt":"2025-06-01T10:31:40","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=90594"},"modified":"2025-06-01T10:31:40","modified_gmt":"2025-06-01T10:31:40","slug":"how-is-the-magnitude-of-price-elasticity-for-an-individual-good","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/how-is-the-magnitude-of-price-elasticity-for-an-individual-good\/","title":{"rendered":"How is the magnitude of price elasticity for an individual good"},"content":{"rendered":"

How is the magnitude of price elasticity for an individual good determined?<\/p>\n

[amp_mcq option1=”1, 2 and 3″ option2=”1 and 4 only” option3=”1, 2 and 4″ option4=”3 and 4″ correct=”option1″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CAPF – 2021<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nBased on the common factors determining price elasticity and likely intended factors for this question (although the factors 1, 2, 3, 4 were missing in the prompt), the combination of factors 1, 2, and 3 is the most accurate choice among the given options. Assuming factors 1, 2, and 3 refer to the nature of the good (necessity\/luxury), availability of substitutes, and proportion of income spent, respectively, these are all significant determinants.
\n<\/section>\n
\nKey factors that determine the price elasticity of demand for a good include: 1. The nature of the good (necessity vs. luxury); 2. The availability and closeness of substitutes; 3. The proportion of income spent on the good; and 4. The time period under consideration (short run vs. long run).
\n<\/section>\n
\nAssuming the original question listed common factors such as ‘Nature of the good’, ‘Availability of substitutes’, ‘Proportion of income spent’, and ‘Time horizon’ corresponding to options 1, 2, 3, and 4, then all four are valid determinants. However, given the provided answer choices, option A (1, 2 and 3) suggests that factors 1, 2, and 3 (likely Nature, Substitutes, and Proportion of income) were considered the primary determinants relevant to the question’s design, or factor 4 (Time horizon) was either different or not included in the intended correct combination.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

How is the magnitude of price elasticity for an individual good determined? [amp_mcq option1=”1, 2 and 3″ option2=”1 and 4 only” option3=”1, 2 and 4″ option4=”3 and 4″ correct=”option1″] This question was previously asked in UPSC CAPF – 2021 Download PDFAttempt Online Based on the common factors determining price elasticity and likely intended factors for … <\/p>\n

Detailed SolutionHow is the magnitude of price elasticity for an individual good<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1110,1120,1174],"class_list":["post-90594","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1110","tag-economic-development","tag-national-income-gross-domestic-product","no-featured-image-padding"],"yoast_head":"\nHow is the magnitude of price elasticity for an individual good<\/title>\n<meta name=\"description\" content=\"Based on the common factors determining price elasticity and likely intended factors for this question (although the factors 1, 2, 3, 4 were missing in the prompt), the combination of factors 1, 2, and 3 is the most accurate choice among the given options. Assuming factors 1, 2, and 3 refer to the nature of the good (necessity\/luxury), availability of substitutes, and proportion of income spent, respectively, these are all significant determinants. Key factors that determine the price elasticity of demand for a good include: 1. The nature of the good (necessity vs. luxury); 2. The availability and closeness of substitutes; 3. The proportion of income spent on the good; and 4. The time period under consideration (short run vs. long run).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/how-is-the-magnitude-of-price-elasticity-for-an-individual-good\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How is the magnitude of price elasticity for an individual good\" \/>\n<meta property=\"og:description\" content=\"Based on the common factors determining price elasticity and likely intended factors for this question (although the factors 1, 2, 3, 4 were missing in the prompt), the combination of factors 1, 2, and 3 is the most accurate choice among the given options. Assuming factors 1, 2, and 3 refer to the nature of the good (necessity\/luxury), availability of substitutes, and proportion of income spent, respectively, these are all significant determinants. Key factors that determine the price elasticity of demand for a good include: 1. The nature of the good (necessity vs. luxury); 2. The availability and closeness of substitutes; 3. The proportion of income spent on the good; and 4. The time period under consideration (short run vs. long run).\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/how-is-the-magnitude-of-price-elasticity-for-an-individual-good\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:31:40+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"How is the magnitude of price elasticity for an individual good","description":"Based on the common factors determining price elasticity and likely intended factors for this question (although the factors 1, 2, 3, 4 were missing in the prompt), the combination of factors 1, 2, and 3 is the most accurate choice among the given options. Assuming factors 1, 2, and 3 refer to the nature of the good (necessity\/luxury), availability of substitutes, and proportion of income spent, respectively, these are all significant determinants. Key factors that determine the price elasticity of demand for a good include: 1. The nature of the good (necessity vs. luxury); 2. The availability and closeness of substitutes; 3. The proportion of income spent on the good; and 4. 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