If the price of a product increases and the quantity demanded decreases significantly, it can be concluded that the demand for that product is elastic.

When we talk about the elasticity of demand, we are looking at how much the quantity demanded of a product changes when its price changes. If the price goes up and many people buy less of that product, it shows that they are sensitive to price changes, which means the demand is elastic. For example, if a popular brand of sneakers raises its price from $100 to $120 and sales drop from 1,000 pairs to 500 pairs, we can see that customers are reacting strongly to the price increase. This reaction indicates that consumers have alternatives or are willing to forgo the purchase, demonstrating that the demand is elastic. In simple terms, when a price increase leads to a big drop in sales, it shows that people really notice the price change and adjust their buying habits accordingly.