Many candidates were able to provide answer for the (a) part of this question. However, most candidates were unable to explain the factors that could influence price elasticity of demand. This made most candidates not to obtain the maximum marks for the question. Candidates were expected to explain the following points to score good marks for this question.

(b)(i) Availability and closeness of substitutes;
(i i) The proportion of income spent on the product;
(i i i) Time;
(iv) Add iet ion/Habit:
(v) Luxuries and necessities:
(vi) Number of different uses of a commodity;
(vii) Width of definition of the product;
( viii) The level of price of the commod ity.