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The higher the income elasticity, the more sensitive demand for a good is to income changes. Very high income elasticity suggests that when a consumer's income goes up, consumers will buy a great deal more of that good. Very low price elasticity implies just the opposite. There are factors that affect price elasticity also:
1) Availability of substitutes, the more possible substitutes, the greater the elasticity.
2) Degree of necessity.
3) Proportions of the purchaser's budget consumed by the item, products that consume larger portions of a purchaser's budget tend to have a greater elasticity...
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