Factors affecting the price elasticity of demand
Factors that influence the price elasticity of demand include:

Availability of substitutes:
- If there are many substitutes available for a product, the demand tends to be more elastic as consumers can easily switch to alternatives when the price of the product changes.
- For example, if the price of one brand of coffee increases, consumers can easily switch to a different brand without much impact on their overall consumption.

Necessity vs. luxury goods:
- Necessity goods tend to have inelastic demand as consumers will continue to purchase them regardless of price changes.
- On the other hand, luxury goods have more elastic demand as consumers are more sensitive to price changes for these non-essential items.

Income level of consumers:
- The income level of consumers can also affect the price elasticity of demand.
- For normal goods, an increase in income may lead to an increase in demand, while for inferior goods, the demand may decrease as income rises.

Time horizon:
- The time period considered can also impact the price elasticity of demand.
- In the short run, demand may be more inelastic as consumers have less time to adjust their purchasing habits. In the long run, demand tends to be more elastic as consumers have more time to find alternatives.

Brand loyalty:
- Consumers who are loyal to a particular brand may have less elastic demand for that brand's products.
- They may be willing to pay a higher price for the brand they trust, making the demand less responsive to price changes.
These factors play a crucial role in determining the price elasticity of demand for a product and can help businesses understand how consumers will react to changes in price.