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

An example of a product with hight elastic demand are candies, or sweets of a specific brand or kind, because if their prices go up, you will probably be able to buy another similar candy or sweet quickly.

Factors:

A product with an elastic demand usually has (many) substitutes, which make that specific product replaceable. If the product does not have a substitute (i. e. a specific medicine), it would have a low elastic demand, because you cannot change it when prices go up. An other factor that affects demand elasticity is the proportion or share on your income that an expenditure of an specific item represents in your budget. The higher the proportion of your income you spend in the product, the more elastic elasticity of demand will be. As an example, think about the price of salt or pepper: if the salt you consume doubles its price, you can still afford to buy it, because it does not represents an important share of your income. On the other hand, if your house's rent doubles, you will probably look for another apartment that you can afford, because it represents an important share of your income.