Microeconomics is the subfield of economics ... Which factors determine the elasticity of demand of a good? While numerous factors can affect demand elasticity, there are two common ones.

Demand elasticity relates to how sensitive the demand for a product is as its price changes. For example, if there's a big change in demand due to a small price change, demand elasticity is high.

To understand why, we need to turn to Microeconomics 101, and specifically the question of price elasticity. The big picture: ...