It is influenced by factors such as the availability of substitutes. In the beverage industry, the market is flooded with substitutes. In this case, if Coca Cola raises prices, consumers will shift to substitute products such as carbonated drinks, which implies that the elasticity of demand is elastic and greater than 1. Time also influences the elasticity of demand of the Coca Cola such that if it is long, consumers will take a long time to switch to substitutes and it will be elastic. However, if the price change is too short, the elasticity of demand will be inelastic. The elasticity of consumer demand affects purchasing power so; a price increase puts pressure on the consumer