(i) Number of Substitute Available for the Good: Demand for goods which have close substitutes (like tea and coffee) is relatively more elastic because, when price of such good rises, the consumers have the option of shifting to its substitute. Goods without close substitutes like cigarettes, etc., are generally found to be less elastic in demand.
(ii) Nature of the Good: Ordinarily, necessaries like salt, matchboxes, etc., have less than unitary elastic demand. Luxuries like air conditioner, costly furniture, car, etc., have greater than unitary elastic demand. Comforts like, cooler, fans, etc., have neither very elastic nor very inelastic demand. Jointly demanded goods like pen and ink, etc, shows a moderate elasticity of demand.
