Governments also rely heavily on price elasticity of demand when imposing taxes and setting minimum or maximum prices. When determining the PED it is essential to take into account the determinants of price elasticity of demand. These include the number of substitutes and their proximity, the length of time it takes consumers to find substitutes, and the percentage of income spent on goods. The elasticity of a product will fall into five types of elasticity; perfectly elastic, relatively elastic, relatively inelastic, unitary elastic or infinitely elastic. Governments impose taxes such as excise duties and indirect taxes on goods that have price inelastic demand, this creates tax revenue for the government and was created so that consumers would pay most or all of the tax on the product. Without price elasticity of demand, businesses and government would not be able to calculate the responsiveness of quantitative demand to a change