In general, products that are consumed in different amounts have elastic demand.

• A. True
• B. False
• C. It depends on the product
• D. Not enough information

Answer: (A)

Elastic demand means buyers change the amount they purchase when the price changes. When a product is consumed in different amounts, people have room to adjust how much they buy—either cutting back or buying more as prices change. Discretionary items or goods with close substitutes often see bigger changes in quantity in response to price moves, so their demand tends to be elastic. That’s why, in general, products that are consumed in varying amounts show elastic demand. There are exceptions for essentials or goods with few substitutes, where demand can be more inelastic, but the general pattern supports the statement.