What are the determinants of the price elasticity of demand?

Price levels of the product.

The level of the product's prices affects the demand for the product. The price elasticity of demand measures the sensitive change in the product's demanded quantity over the product's cost change.

Income.

Income has a massive role in determining the price elasticity of demand. Income elasticity of the demand measures changes in demanded quantity over the change in individuals'. Levels of income affect various commodities. For instance, the quantity demand for generic items tends to go down due to the increase in the consumer's income since generic items have negative income elasticity.

Availability of substitute products.

Substitute or alternative commodities have an impact on demand elasticity. Demand for services or items that has so many close substitutes tends to be elastic. A slight rise in the price of one commodity tends to cause a consumer to opt for alternative products. For instance, soda has an elastic demand since there are several close substitutes.