What is true about elastic demand?

Elastic demand refers to a situation in which the quantity demanded of a good or service is highly responsive to changes in price. When the price elasticity of demand is assessed, a value less than -1 indicates that the percentage change in quantity demanded exceeds the percentage change in price. This signifies that consumers will significantly alter their purchasing behavior in response to price fluctuations. Thus, if the price of an elastic good increases, the quantity demanded will decrease proportionally more, and vice versa.

The other statements describe characteristics of inelastic demand or perfectly inelastic demand. For instance, unresponsive demand, as described in the first option, indicates an inelastic scenario. A vertical demand curve implies that quantity demanded does not change at all regardless of price, which is characteristic of perfectly inelastic demand. Finally, the concept that quantity demanded remains constant regardless of price aligns with inelastic demand, not elastic demand. Therefore, recognizing that elastic demand involves a price elasticity greater than -1 helps clarify the behavior of consumers in response to price changes.