[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 an increase in price causes an increase in total revenue, then the demand is inelastic. Just like baby formula or milk, the increase in price does not have a large impact on the quantity demanded. On the contrary, if an increase in price causes a decrease in total revenue, then the demand can be said to be elastic.