In the context of elastic goods, what is true about their demand?

When evaluating the demand for elastic goods, the defining characteristic is that their demand is sensitive to price changes. This means that when the price of an elastic good decreases, the quantity demanded increases significantly, and conversely, if the price increases, the quantity demanded drops substantially. This responsiveness is typically due to the availability of substitutes; consumers can easily switch to alternatives if the price of the good rises.

In contrast, unresponsive demand, such as what is indicated in other choices, would apply to inelastic goods, where changes in price do not significantly affect the quantity demanded. The notion that demand increases only when the product is on sale does not encapsulate the broader context of how elastic demand works, since elastic demand can fluctuate with any price change, not just promotional discounts. Additionally, the idea that demand remains constant regardless of price applies to perfectly inelastic goods, not elastic ones. Therefore, price changes have a significant impact on the quantity demanded for elastic goods, affirming that their demand is indeed sensitive to price movements.