6 Price elasticity reveals the responsiveness of the amount purchased to a change in price. When there are good substitutes available and the item forms a sizable component of the consumer's budget, its demand will tend to be more elastic. Typically, the price elasticity of a product will increase as more time is allowed for consumers to adjust to the price change. This direct relationship between the size of the elasticity coefficient and the length of the adjustment time period is often referred to as the second law of demand.