Our architecture leverages both scalability and elasticity to efficiently handle variable traffic by combining horizontal scaling and auto-scaling strategies. For scalability, we use horizontal scaling to add more instances of services across multiple availability zones (e.g., using AWS EC2 or Azure VMs), ensuring that we can handle increased traffic by distributing workloads. This allows us to grow capacity incrementally as demand increases. On the elasticity side, we take advantage of auto-scaling groups that automatically adjust the number of running instances based on real-time demand. For example, during peak usage, more instances are automatically spun up, and when traffic decreases, unnecessary instances are terminated, optimizing resource usage and minimizing costs. This dynamic, automated scaling ensures that our applications maintain high performance and availability, even during traffic spikes, while also reducing resource wastage during off-peak periods. Overall, this combination allows us to handle traffic efficiently, maintaining both cost-effectiveness and system reliability.