Question

Which explains how elastic demand would most likely affect consumer demand?

Answer 1

I believe the answer is: People might buy a less expensive substitute good.

For example, Both olive oil and coconut oil is considered a healthy choice for cooking oil, but olive oil is more popular due to its lower saturated fat.

But, when the price of olive oil increases, the demand for this product would decrease because many customers would think that the increase in price does not really worth the quality difference between olive oil and coconut oil

Answer 2

One good example or explanation in which will point out how elastic demand can affect the consumer demand is when the consumers are engaging in buying a good that is less expensive and is considered to be a substitute good for the good that is more expensive for it.