(i) Nature of the Commodity: In case of comforts and luxuries, demand tends to be elastic because people buy those more only when their prices are low. e.g. TV sets.

In case of necessaries, demand is inelastic because whatever may be the price, people have to buy and use them. e.g. Rice.

(ii) Existence of Substitutes: If a product has substitutes, demand tends to become elastic because people compare tho prices of substitute goods and cheaper products are purchased, eg. Blades, Soaps.

If a product has no substitutes, demand becomes inelastic because in that case whatever may be the price, people have to buy them. e.g. Onion.

(iii) Durability of the commodity: If a product is perishable or non durable, demand tends to be inelastic, because people buy them again and again. If a product is durable, demand tends to be elastic because people buy them occasionally.

(iv) Number of uses of a commodity: If a product has multiple uses, demand tends to become elastic because, with a fall in price, the same product can be used for many purposes, e.g. Electricity, coal etc.

If a product has only one use, in that case demand becomes inelastic because people have to buy them for a specific single purpose whatever may be the price, e.g. All eatables, seeds, fertilizers, pesticides etc.

(v) Possibility of postponing the use of product: If there is a possibility to postpone the use of particular product, demand tends to become elastic, e.g. Buying a scooter, motorcycle, TV sets etc. people generally buy these articles when they are cheaper.

If it is not possible to postpone, demand tends to become inelastic. In this case, whatever may be the price, people have to buy them. e.g. Medicine.

(vi) Level of income of the people: Generally speaking, demand will be elastic in case of the poor people because even a small change in price will affect the demand for various products.

On the other hand demand will be inelastic in case of rich people because they are ready to spend any amount on buying a product.

(vii) Habits: If people are not habituated for the use of certain products, then demand tends to be elastic. If products are cheaper, they buy more and if they become costly, they may buy less or may not buy them at all.

When people are habituated for the use of a particular commodity, they do not care for price changes over a certain range, e.g. Cigarettes,, liquor etc. In that case, demand tends to become inelastic.

(viii) Complementary goods: Goods which are jointly demanded are inelastic in nature, e.g., ink and pens, vehicles and petrol etc. This is because, if people buy one product, they have to buy the supplementary products also without which they cannot make use of the first item.

Demand tends to be elastic in case of independent products, e.g., biscuits, chocolates, ice-creams etc. In this case, consumption or use of a product is not linked to any other products. Hence, they may or may not buy a product.