[Note: The distance between cities in California (US) distance chart below is straight line distance (may be called as flying or air distance) between the two locations in California (US) calculated based on their latitudes and longitudes. This distance may be very much different from the actual travel distance.]
Price of Related Goods: Demand for the given commodity is also affected by change in prices of the related goods. Related goods are of two types: (i) Substitute Goods: Substitute goods are those goods which can be used in place of one another for satisfaction of a particular want, like tea and coffee.
How does the price range affect the elasticity of demand for a product? Demand for a good can be inelastic at a low price, but elastic at a high price If prices rise, but income stays the same, what is the effect on the quantity demanded? The quantity of demand decreases What effect does the availability of many substitutes have on the elasticity of demand for a good? Demand is elastic If prices rise, but income stays the same, what is the effect on demand?