[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.
If it is less than 1, it is inelastic. EFFECTS:Whether the demand or supply of a particular good is elastic or inelastic depends in part on how essential it is to most consumers. Goods that are necessities for consumers everyday lives are more inelastic. Consumers continue to purchase such goods, despite price increases. CONSIDERATIONS:Demand is more elastic if there are substitutes for a particular product or if it is considered a luxury by most consumers.