5 examples of products with elastic demand
The more luxurious the product is, the more elastic demand will be. Share of the consumers budget: If a product takes up a large share of a consumers budget, even a small percentage increase in price may make it prohibitively expensive to many buyers.Credit: Pixabay. Examples of elastic products are coffee, airline tickets, and stocks. If there is a change in the price of an elastic product, it is likely to cause a shift in demand for that product. One factor that affects the elasticity of a products demand is the availability of close substitutes for the product. 5 examples of products with elastic demand
Dec 17, 2011 Best Answer: An elastic good is a good where if the price goes up, people will stop buying or greatly reduce demand of a particular product; and if the price goes down, people will greatly increase of increase demand of a particular good. An inelastic good is a
Price elasticity of demand for a product or service is a measure of how much the quantity demanded changes as a result of a change in price. Very inelastic products would show little change in demand when prices are increased. Elastic products would have a significant change. Formula. Elastic demand is when the quantity to price ratio is more than one. If the price dropped 10 percent and the amount demanded rose 50 percent, then the ratio would be 5. At the other extreme, if the price dropped 10 percent and the quantity demanded didn't change, then the5 examples of products with elastic demand Feb 28, 2012 What are 5 examples of elastic demand products& inelastic demand products? I didnt really understand inelastic and elastic demand in Economics class today, so I was wondering if someone can give me 5 examples of demand products of inelasticity and elasticity.