List determinants of elasticity, and explain each determinant in detail.

Some of the determinants of elasticity include income levels of substitutability, necessities vs. Luxuries, and time.

• Necessities vs. Luxuries: Necessities refer to essential products that an individual cannot do without them. On the other hand, luxuries refer to products an individual can do without. If a product is a necessity, then the product demand is likely to be inelastic. On the contrary, if the product is a luxury, the product's demand will be more elastic.
• The existence of substitute: When a product can easily be substituted with another, its elasticity tends to be high. On the other hand, if a product cannot be easily substituted with another product, its elasticity will be less.
• Time: If the time under consideration is long, the elasticity will be high because the individual will have more time to check out for substitutes.