Because the price of condensed soup is small relative to a consumer's purchasing power,and there are several alternate uses for the product,condensed soup probably has elastic demand.

Question

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Elastic demand means that when the price of a product changes, there is a significant change in the quantity demanded. Since condensed soup is a small expense for most consumers and there are alternative uses or substitutes for it, consumers are likely to be sensitive to changes in its price, indicating elastic demand.

Because the Price of Condensed Soup Is Small Relative to a Consumer's