Personal likes and dislikes affect the elasticity of a good or service true or false

False. Personal likes and dislikes do not directly affect the elasticity of a good or service. Elasticity is a measure of the responsiveness of quantity demanded or supplied to a change in price, income, or other relevant factors.

1. Availability of Substitutes: If there are close substitutes for a good or service, the demand for it will be more elastic. Consumers can easily switch to the substitute if the price of the original good rises.

2. Proportion of Income: If a good or service represents a large portion of a consumer’s income, it is more likely to be elastic since the consumer will be more sensitive to changes in the price.

3. Necessity vs. Luxury: Goods and services that are considered necessities tend to have inelastic demand because consumers will purchase them regardless of price changes. In contrast, luxury items usually have elastic demand because consumers can forego these purchases if the price becomes too high.

4. Time Horizon: Demand can be more elastic in the long run than the short run, as consumers have more time to find substitutes or adjust their behavior.