Which of the following happens if demand is elastic?
A)As price goes up, consumer demand changes.
B)The competition between organizations reduces.
C)There is no substitute for a product in such case.
D)Purchasing power of the consumer decreases.

Question

Which of the following happens if demand is elastic?
A)​As price goes up, consumer demand changes.
B)The competition between organizations reduces.
C)There is no substitute for a product in such case.
D)​Purchasing power of the consumer decreases.

Quizplus · Accepted Answer

If demand is elastic, as price goes up, the consumer demand changes significantly. This means that consumers are sensitive to changes in price and are likely to look for substitutes or alternatives, resulting in a decrease in demand.

Which of the Following Happens If Demand Is Elastic