What type of demand will be affected by a subsidy to encourage consumption?

If demand is 'elastic,' or 'flexible,' then there will be a large response in quantity demanded when there is a price change. For example, if a government subsidy was offered to bring the price of electric cars down to be competitive with gas fueled cars, there would likely be a large increase in demand. Without a subsidy, the electric cars will be too expensive for some who might like to purchase them. 'Inelastic' demand for an item would mean that the quantity demanded wouldn't change as much with a change in price. For example, those who can't afford the electric cars will be forced to pay higher prices for gas to run the cars they already have.