Which of these describes a situation of elastic demand?
A. A store increases the price of tea, and revenues increase.
B. A gas station increases its prices by 10%, and business drops way
off.
C. The price of peanuts rises by 10%, and the quantity sold falls by
10%.
O D. A drug company increases the price on a drug, and sales remain
strong.

The elastic demand is described in the situation where the gas station increase by 10% price forms business drop way off. Thus, option B is correct.

What is an elastic demand?

Elastic demand is given as the change in the quantity with respect to the change in price. The difference between the inelastic and elastic demand is that there will be a small change in the inelastic collision and a large change in an elastic collision.

The situation that demonstrates the elastic demand is the gas station increase in price results in the drop way off the business. Thus, option B is correct.

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