Tag Archives | determines

8 essential factors that determines propensity to consume

8 essential factors that determines propensity to consume. Income is the most important factor which determines the consumption expenditure in a society. The greater the level of disposable income, the higher is the consumption.

9 factors that determines the elasticity of demand

9 most essential factors that determines the elasticity of demand are : 1. Nature of goods 2. Availability of substitutes 3. Alternative use 4. Possibility of postponing consumption 5. Proportion of income spent 6. Price-level 7. Force of habit 8. Durability of commodities and 9. Income level.

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