Elastic demand is when a product or service’s demanded quantity changes by a greater percentage than changes in price. The opposite of elastic demand is inelastic demand, which is when consumers buy largely the same quantity regardless of price.Elastic products have substitutes.
A common example of an elastic product is gasoline. As the price of gas increases and falls with the international market, the demand (the distance driven by the population) rises and falls in near direct correlation. Gasoline has an elasticity quotient of one or greater and has a flatter slope on a graph.