Identify the determinants of the price elasticity of demand. Explain each one. Many factors can affect price elasticity of demand, but four main factors are recognized by economists substitutability, whether a good is perceived as a luxury item or a necessity, time, and the size of a purchase relative to income (Amacher & Pate, 2019, Ch. 4.4). Substitutability is arguably the most important factor in determining price elasticity of demand (Amacher & Pate, 2019, Ch. 4.4, para. 2). A product with numerous substitutes, higher substitutability, will have increased elastic demand in comparison to a product with few substitutes. For instance, cotton balls have a relatively inelastic demand because there are few substitutes for them. If the price of cotton balls increases, purchasers...