Which statement accurately describes elastic demand?

Elastic demand refers to a situation where the quantity demanded of a good or service changes significantly in response to changes in its price. When demand is elastic, consumers are quite responsive to price fluctuations; a small change in price will lead to a proportionately larger change in the quantity demanded. This means that if the price of a product decreases, consumers will buy much more of it, and conversely, if the price increases, they will buy significantly less.

In contrast, the other options represent different characteristics of demand elasticity. The first statement describes unitary elasticity, where the percentage change in price equals the percentage change in quantity demanded, indicating a balanced response. The second statement implies inelastic demand, where a percentage change in price leads to a smaller change in quantity demanded, reflecting less sensitivity to price changes. Lastly, the fourth option describes perfectly inelastic demand, where the quantity demanded remains unchanged regardless of price variations, indicating no responsiveness at all. Therefore, the focus on a small price change leading to a larger change in quantity demanded is what exemplifies elastic demand.