Which of the following statements is true about price elastic demand?

The statement that price elasticity is greater than one accurately describes price elastic demand. When demand is price elastic, it means that consumers are highly responsive to changes in price. Specifically, a price elasticity greater than one indicates that a percentage change in price results in a larger percentage change in the quantity demanded. For instance, if the price of a good increases by 10% and the quantity demanded decreases by 15%, the price elasticity of demand would be calculated as 15% divided by 10%, which equals 1.5, confirming it is price elastic.

In contrast, price inelastic demand would have an elasticity value of less than one, indicating that quantity demanded is relatively unresponsive to price changes. Moreover, the notion that quantity demanded does not respond to price changes, as referenced in one of the options, characterizes perfectly inelastic demand, which is different from elastic demand. Finally, a vertical demand curve represents perfectly inelastic demand, where quantity demanded remains constant regardless of price changes, further distinguishing it from price elastic demand.