Which of the following explains the difference between elastic and inelastic demand?
a. Elastic demand means product demand varies with a change in the product's price, while inelastic demand means the product demand remains static even with a change in the product's price.
b. Elastic demand relates to intangible services, while inelastic demand relates to tangible goods.
c. Elastic demand relates to the internal projects of a firm, while inelastic demand relates to the external projects of a firm.
d. Elastic demand means the product demand depends on the segmentation process of a firm, while inelastic demand means the product demand depends on the targeting process of a firm.
Answer: A