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Hello.
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By its definition, the price elasticity of demand is a measure of how responsive buyers are to price changes.
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It measures the percent change in quantity demanded that follows from a 1 % price change.
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And here we have the question, which of the following factors does not affect the price elasticity of demand? and let's look to all of them.
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There are four answer options.
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Let's start with the first one.
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The number of consumers in the market.
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And the number of consumers in the market actually does not affect the price elasticity of demand.
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So this is the correct answer.
00:58
Because when people make their...
01:02
Decisions to buy or not to buy the particular good they don't consider this factor.
01:14
So the number of consumers is not important for the price responsiveness of the buyers.
01:26
Okay, what about other answers? the first one or the second answer, b is availability of of substitutes...