Determinants of elasticity: Amount of time that has elapsed since the price change

The amount of time that has elapsed since the price change is one of the main determinants of elasticity. This is because in the short term, buyers may find it difficult to change their consumption behavior in response to a price change and the demand for a good may be relatively inelastic. However, as more time passes, buyers will have more time to shop around for a better price or switch to substitute goods, and demand will become more elastic.