Question

5. Describe a product you know of that has elastic demand. Why is the demand for this
product elastic? Explain. (1-3 sentences. 3.0 points)

Answer 1

A good or service is said to be highly elastic if there is a a slight change in price this will cause a  sharp change in the quantity. Usually these kinds of products are readily available in the market - example is jewelry. lottery ticket.

Answer 2

Answer:

Dimond has elastic demand. Demand for this product is elastic because it is a luxury item. Since this item is not a necessity, as the price rises, the quantity demanded for the item falls drastically since it is not needed for survival.

Explanation: