Discover how price levels, consumer income, substitutes, and product types impact demand elasticity for goods and services, influencing consumer decisions.

Discover the key factors affecting demand elasticity, including type of good, price, income, and substitutes, and learn how these influence consumer behavior.

Demand elasticity is a phenomenon where demand for a specific good or service changes depending on factors such as how it is priced, whether alternatives are available or local income trends.

Elasticity is a method of measuring the likelihood of one economic factor affecting another, such as when the price of an item affects consumer demand or when supply affects how much something costs.