In elastic demand situations, which statement is true?

In the context of elastic demand, the statement that is accurate reflects the inherent sensitivity of consumers to price changes. When demand is elastic, it means that consumers react strongly to price alterations. Therefore, as the price rises, the quantity demanded decreases significantly. This occurs because consumers tend to reduce their purchases or seek alternatives when items become more expensive.

Elastic demand typically occurs for non-essential goods or in markets where substitutes are readily available, enabling consumers to easily switch to alternatives if prices increase. This relationship demonstrates the responsiveness of consumers in relation to price adjustments. Consequently, a rise in price leads to a more than proportionate drop in quantity demanded, which exemplifies the concept of elasticity in economics.

In contrast, the other statements either imply that quantity demanded remains relatively stable regardless of price changes or suggest a scenario where quantity demanded increases as price increases, which contradicts the characteristics of elastic demand.