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

When the price of a product goes up and people buy less of it, we say that the demand for that product is elastic. This means that consumers are sensitive to changes in price. For example, if the price of a favorite snack increases significantly, many people might choose to buy a different snack instead. In this case, the change in price leads to a larger change in how much is bought. Elastic demand shows that when prices rise, people are likely to find alternatives or cut back on their purchases.