A high elasticity indicates that consumers will respond to a price rise by buying a lot less of the good and that consumers will respond to a price cut by buying a lot more...==Taxes and subsidies==A sales tax on the commodity does not directly change the demand curve, if the price axis in the graph represents the price including tax.
A high elasticity indicates that consumers will respond to a price rise that buying a lot less of the good and that consumers will respond to a price cut by buying a lot more.