Price of alternative items
Whenever a couple of items substitute for both, they satisfy the exact same you want. Thus, when your price of one to rises, users change to another.
Capture Pepsi and you can Coca-Cola because examples. The rise about price of Coca-Soda motivated customers to make to help you Pepsi and you can shift the demand curve off to the right. Simultaneously, Pepsi's price hike prompted these to change to Coca-Soda.
How sensitive something would be to their alternatives does not only count on the purchase price. But, in addition it...