The elasticity of demand for a product in a given country is determine

QUESTION

The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are the two most important.

Indicate whether the statement is true or false.

ANSWER

TRUE
The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are the two most important. Price elasticity tends to be greater in countries with low income levels.