What are the determining characteristics as to whether a product's demand will be elastic or inelastic?
One way to determine if a product's demand is elastic or inelastic is to examine if it can be replaced by a similar one. If consumers buy the product no matter the price, then the demand is determined to be inelastic. If consumers can go without the product or buy a similar product when the price rises, then the demand is determined to be elastic.
For example, if a candy bar increases its price, people...
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