Goods and services regarded as necessities have a relatively inelastic demand
Price elasticity of demand would be expected to be higher for luxuries
Existence of Close Substitutes
Goods with close substitutes tend to have highly elastic demand
Goods with few or no close substitutes would have an inelastic demand
Proportion of Income Spent on Good
Goods that take up a small proportion of income would have a lower price elasticity of demand
Demand for more expensive items tend to be more elastic
Length of Time Since a Price Change
When the price of a good increases, the quantity demanded may not initially respond greatly as consumers take time to become aware and adjust to a price change
