Final answer:
The incorrect statement about an elastic demand curve is that 'The demand curve is steep.', as this suggests inelastic demand, where quantity demanded is not highly responsive to price changes, contrary to the characteristics of elastic demand.
Step-by-step explanation:
The statement that is inconsistent with an elastic demand curve is 'The demand curve is steep.' (Statement 3). This statement contradicts the nature of an elastic demand curve because when demand is elastic, a small change in price leads to a large change in the quantity demanded. In contrast, a steep demand curve implies that quantity demanded is not very responsive to price changes, which describes an inelastic demand situation. On an elastic demand curve, the price elasticity of demand is greater than 1, meaning that consumers respond significantly to changes in price.
Recap of the characteristics of an elastic demand curve