Page 95 - F1 - AB Integrated Workbook STUDENT 2018-19
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External analysis – economic factors
3.2 Factors affecting PED
Substitutes availability of substitutes more elastic
Necessity or habit necessity or habit less elastic
Time frames More inelastic in the short term
Loyalty/brand strength customer loyalty less elastic
Proportion of income less elastic if a small proportion of one’s total income
Definition of the market Wide definition fewer alternatives less elastic
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