Which situation best illustrates the concept of elastic demand for a product? O A. A watch company raises its prices after a celebrity is seen
wearing one of its products.
O B. A store always sells the same amount of milk each month
regardless of the price.
C. A gas station is forced to quickly raise gas prices when oil gets
more expensive.
O D. A restaurant begins to see fewer customers each month after
raising its prices.

D. A restaurant begins to see fewer customers each month after

raising its prices.

Explanation:

Elastic demand describes a situation where the demand for a good or service experiences big changes due to a small price change. It means the change in demand is not proportionate to the price change.

The term elastic demand implies a stretching demand. A restaurant seeing fewer customers after raising its prices is an example of Elastic demand. The increase in prices of the restaurant products has caused a significant decline in demand.

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