To study whether Kellogg's Corn Flakes is a product with price elasticity of demand or price inelasticity of demand, the following are some of the vital determinants on which can rely on: Determinants that influence the elasticity of demanda) Number of availability of substitute goodsIn general, the greater the number of substitute goods available, the greater the price elasticity of demand. In such a case, various brands of similar products are available in the market which are basically suitable for consumers to consume as substitute products for each other, making the demand for that particular brand highly elastic. (McConnell, Brue, & Flynn, 2012) b) Income Proportion According to Lau, LS (2014), when an item represents only a relatively small portion of the total budget, consumers tend not to focus too much on its prices. Therefore, the price elasticity of the item becomes inelastic for buyers. c) TimeGoods tend to have more elastic demand over longer time horizons because the longer the time period involved, the more flexible the adjustments consumers can make (Lau, LS, 2014) . Consumers often need time to adjust to price changes. For example, when the price of a product increases, consumers need time to research and experiment with other products to see if they are suitable and acceptable. (McConnell, Brue, & Flynn, 2012) d) Necessity vs. Luxury Basically, the more a good is considered a “luxury” rather than a “necessity,” the greater the price elasticity of demand. By definition, it can be described as something that can be easily given up. Electricity consumption is one of the best examples of reality. People find it difficult to survive without electricity supply... middle of paper... spread across more than 30 countries around the world. Therefore, we can conclude that Kellogg's Corn Flakes is a product with inelastic demand in terms of price, although Nestlé, the world-famous food and beverage company, may be the main rival of Kellogg's in the market. However, by comparing the selling price of corn flakes produced by the two companies, we find that the difference in price range between the two products (comparing corn flakes with the same supplement) is not more than one Ringgit. We therefore believe that with the similar price level of corn flakes set by Kellogg's and Nestle company, consumers would not be affected by small changes in product prices as both companies have their own supporters, unless one day drastic changes occur in the prices on the product from any of the companies. That will be an economic event with a different story.