If a firm experiences a decrease in the price of its product, how is the quantity demanded likely to change, assuming the product has high price elasticity?

When a firm lowers the price of its product, the quantity demanded is likely to increase, especially if the product has high price elasticity. High price elasticity means that consumers are very responsive to price changes; when the price drops, more people want to buy the product because it feels like a better deal. For example, if a popular brand of sneakers goes from $100 to $80, many more customers might decide to buy them because they see the lower price as a bargain. This increase in quantity demanded can help the firm sell more units, even though each unit is sold for less money. Ultimately, this adjustment can lead to increased total sales and potentially higher overall revenue for the firm.