Elastic demand refers to a situation in economics where the quantity demanded of a good or service changes significantly in response to price changes. When the price of a product decreases, consumers are likely to buy much more of it, and conversely, if the price increases, they may buy much less. This responsiveness is typically seen in non-essential items or goods with many substitutes. A common example of elastic demand is luxury goods like designer clothing or gadgets. If the price of a smartphone drops, many consumers may choose to purchase it, while a price increase could lead them to consider alternatives or delay their purchase.