What are examples of elastic goods?

Economics Dec 17, 2020

Expert Solution

If a price of a good is increased and the demand decreases as a result, then, that good is considered as elastic. Hence, almost all goods are examples of elastic goods. Often, these are the goods with a lot of substitutes. For instance, if the price of coffee increases, a person can drink tea, juice and other beverages as an alternative. In this case, the coffee is an elastic good because the increase in price reduced the demand.

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