Importance on budget. response is inelastic. Necessity or luxury-If an Rem is necessary, response is inelastic, If it is a luxury, response is elastic. The time it takes to develop substitutes-Remember that over the long run the demand for most Items is elastic. 1. The elasticity of demand for the following Items has been determined. Explain why in terms of the primary factors Item Elastic/Inelastle why ? a, Big Mac Elastic b. Salt Inelastic c. Pizza Elastic d. Tickets for Inelastic a popular rock con- cert C. Brain sur- Inelastic