Products that have a high elasticity of demand include those that substitutes are readily available for. Examples include products such regular pain medicine, airline tickets, and hotels. The industries for these goods are very competitive and firms generally tend to be price takers (i.e. have limited power to control pricing for their goods).
Another possibility is that the PED can change though the time. The longer the time, the more elastic it will be. For example, ca will be difficult to find substitutes for petrol in short times, but new carusing natural gas are invented then.
Answered by Emily Hou
on September 28th, 2012 @ 10:30 p.m.