Factors determining Elasticity of demand
- Ease of substitution.
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- Nature of the commodity i.e. whether it is a necessity of life, luxury or addictive.
- Consumers income.
- The number of uses to which the good can be put.
- Time factor.
- The prices of other products.
- Advertisements especially the persuasive ones.
- Whether the use for the good can be postponed.
- Human and economic constraints.