Describe an example of a product that has highly elastic demand. Describe at least two factors that make this product's demand so elastic.

Question

anonymous · Answer

A good or service is considered to be highly elastic if a slight change in price leads to a sharp change in the quantity demanded or supplied. Usually these kinds of products are readily available in the market and a person may not necessarily need them in his or her daily life. 


The product - A stock in a micro cap company or a gas or pharmaceutical company.

Factors - The govt proposing a law that is in favor of the industry, media, and just regular speculation.