Question

Give an example of a good with elastic demand and explain why

Answer 1

Answer:

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Explanation:

Taking CLOTHING as an example

Clothing has elastic demand.

True, people have to wear clothes, but there are many choices of what kind of clothing and how much to spend.

When some stores offer sales, other stores have to lower their clothing prices to maintain demand.

Small stores that can't offer huge discounts go out of business.

During the Great Recession, many clothing stores were replaced by second-hand stores that offered quality used clothing at steeply discounted prices.