What is elastic demand?

Elastic demand refers to a situation in which the quantity demanded of a good or service is highly responsive to changes in price. In other words, when the price of a product changes, the quantity demanded changes significantly in the opposite direction. This means that consumers are very sensitive to price changes and will adjust their purchasing behavior accordingly. Products with elastic demand typically have many substitutes available, making it easier for consumers to switch to a different product if the price of the original product increases.