Question

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

Answer 1

Elastic demand grows or decreases based on changes in the cost of a product, and a product that constantly has to modify and compete for its prices is the water bottle.

A good that has highly elastic demand is water bottles. The various costs that the various brands have for their water bottles are one more factor that makes it highly elastic.