What happen when the demand for a product is highly responsive to changes in price?

When the demand for a product is highly responsive to changes in price, it is referred to as elastic demand. In this scenario, a small decrease in price can lead to a significant increase in quantity demanded, while a price increase can result in a substantial drop in demand. This responsiveness often occurs with non-essential goods or readily available substitutes. Businesses must carefully consider pricing strategies, as even minor price adjustments can greatly impact sales and revenue.