WAEC Economics 1993 Theory question 103

Factors:
1. Availability of close substitutes – more substitutes, more elastic.
2. Nature of the commodity – necessities inelastic, luxuries elastic.
3. Proportion of income spent on it – small share (salt, matches) inelastic.
4. Number of uses – many uses, more elastic.
5. Habit/addiction – habit-forming goods (cigarettes) inelastic.
6. Time period – demand more elastic in the long run.
7. Durability – durable goods' purchase can be postponed (elastic).
8. Complementary goods / joint demand – goods used with others often inelastic.
9. Level of income of consumers.

Explain how each factor affects elasticity.