1. Availability of close substitutes - the more the substitutes are and close they are the more price elastic demand a commodity will be.
2. Number of uses of a commodity - the greater the number of uses of a commodity the greater the quantity demanded will tend to be inelastic.
3. Length of adjustment time - in the short run demand is likely to be inelastic while in long run it is likely to be elastic because it takes time for consumers to adjust their purchases.
4. Extent to which a commodity is habitual - the more a commodity is habitual the more the demand will be price inelastic.
5. The proportion of consumer's income spent on a commodity - whether proportion is very small or little, such as for salt, quantity demanded of a commodity will tend to be inelastic. If the proportion is large as in case of food, demand will tend to be elastic
Jonmhumble answered the question on October 22, 2017 at 19:39
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