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Analyse why the demand for a product may become more elastic over time

Quick Answer:

More substitutes may be available for the product due to more firms, more competition, and more innovation. This means people are more willing to switch to and from the product

The product may be seen to be more of a luxury and less of a necessity

Demand becomes more price sensitive the higher the price as the product becomes less affordable

The product may become less habit-forming addictive products have to price inelastic demand

It may become easier to postpone purchasing the product so a rise in price may result in more consumers delaying their purchase

The product may take up a higher proportion of income change in price would become more significant

Demand will become more price-sensitive as the price of complements rises as the two products combined become less affordable

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