What defines a good with elastic demand characteristics?

A good with elastic demand is characterized by consumers' high responsiveness to price changes. When demand is elastic, a small change in price leads to a significant change in the quantity demanded. This typically occurs for non-essential goods, where consumers can easily substitute or forgo the purchase if prices rise. As prices decrease, consumers are likely to significantly increase their quantity purchased because they are more price-sensitive.

In contrast, the other characteristics describe goods with inelastic demand, where consumers are less sensitive to price changes. For example, if consumers are insensitive to price changes, it indicates inelastic demand, as does a situation where demand remains constant regardless of price. Basic necessities typically exhibit inelastic demand since consumers need them regardless of price fluctuations; they do not have the flexibility to reduce consumption as prices rise. This highlights the unique nature of elastic demand, which is defined by the sensitivity of consumers to price changes.