List and briefly explain the determinants of the price elasticity of demand.

One determinant of the price elasticity and demand is the availability of substitutes. If there are many substitutes for a product in the market, there will be more elasticity because consumers will be sensitive to a price increase. In contrast, few substitutes will lead to a decrease in demand elasticity as customers won't have an option to substitute the product when prices increase. Another determinant is the timeframe as products that demand a short timeframe tend to be less elastic. In contrast, products that demand a longer timeframe tend to be more elastic as customers usually become sensitive to increased prices. The final determinant is the income share. The lower the income share, the less elastic the market will be. In contrast, a higher income share will make consumers unable to demand the same product when prices increase, which will make them sensitive to the price change leading to more elasticity in the market.