6 Factors affecting elasticity of demand

These are the factors which decide the demand elasticity of the consumer. The elasticity of demand may be more elastic or less elastic. The six factors which determine the elasticity of demand are given below:

  • Nature of commodity: There are three types of commodities. The necessities are the things which are essential for the consumer like salt, sugar etc. The demand of these kinds of products does not change much with the change in the price. So the demand of these kinds of products is inelastic. But in case of luxuries products the demand varies with the change in the price. if the price is high some people will stop buying it while if the price¬† falls some people will start buying it.¬† So the demand of these kinds of products is more than elastic. In case of comforts which are required for the comfort of the consumer like air conditioners, heater etc. their demand is elastic.
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