Market Demand: Nature of the Product or Service Is there a need for this product or service in this city? What is the evidence? Are there similar products or substitutes available? Is it possible to observe prices of similar products? Does demand appear to be relatively elastic? Are there related products or complements that might affect demand for this product? Is this a necessity? Luxury? Do consumers appear to be sensitive to price changes? If you were to estimate a demand equation, what factors would you include? Do these factors appear to be conducive to high demand?