When demand for a product changes because of its price, this product is said to be elastic.

Question 10 options:

True

False

True

When a product is elastic, a change in price quickly results in a change in the quantity demanded.

The correct answer is True,

Explanation

Elasticity is a term used in economics to describe the reaction capacity of a product to a change in its demand according to price. This means when the value is high there is less consumption or demand and the value is higher, so most luxury items are considered elastic goods or products. In the same way, if the price reduces then the demand increases. For example, diamonds can be considered an elastic product because if their price fell, everyone would buy them or the demand would increase. So, the correct answer is True.