Factors
Number of closeness and substitutes. The categorization of goods can change this measure. A broad categorization has less substitution and will be less elastic.
Necessity or luxury
Length of time to make decision Longer length of time makes consumer more sensitive to differences in prices, leading to a more elastic demand.
Proportion of income spent on a good Larger portion is more elastic since consumers will be more considerate.
HL
Primary and manufactured commodities
Primary commodities have more inelastic demands since they are essential and have no substitutes. A consequence for farmers is an increase in price results in larger revenues. One way to increase prices are by reducing supply. So there is an ironic conclusion where a more inefficient farm producing less will generate greater revenue. How interesting.