All consumer goods are governed by the laws of supply and demand, so every type of consumer good demonstratesĀ the price elasticity of demand. This does not mean the relationship between demand and price is equal across all types of consumer goods. For example, hamburgers have a relatively high elasticity of demand because they are nonessential, and there are plenty of alternatives for consumers to choose from, such as hot dogs, pizza and salads. Gasoline and oil, however, have no close substitutes and are necessary to power equipment and transportation. These have low price elasticity of demand.

There are several important determinants that influence a good's price elasticity of demand. If the good has plenty of competitive substitutes, elasticity tends to be greater because consumers can easily make a switch when prices rise too much. More expensive goods also tend to be more elastic since consumers are more sensitive to purchases that take up larger proportions of their income.

Brand names and marketing have a large impact on price elasticity of demand as well. For example, a 5% increase in the price of Coca-Cola drinks or Nike shoes has less impact on demand than a 5% increase in a lesser-known and less-trusted competitor. Goods that are considered essential have low elasticity of demand. Electricity, gas, oil and water are all relatively inelastic because consumers rely on these as necessities rather than luxuries. Keep in mind that price elasticity of demand is very time-sensitive. More consumers notice and react to price changes as time goes on, meaning price elasticity of demand tends to increase as time passes.