Which statement is true regarding elastic demand?

Elastic demand refers to a situation where the quantity demanded of a good or service changes significantly in response to price changes. When demand is elastic, even a small increase in price can lead to a large decrease in the quantity demanded, and conversely, a small decrease in price can result in a large increase in the quantity demanded. This characteristic makes elastic demand sensitive to price fluctuations.

Given this understanding, the statement that elastic demand significantly reacts to price changes aligns perfectly with the definition of elasticity in economics. Elasticity is usually quantified using the elasticity coefficient, which, if greater than one, indicates a highly responsive reaction to price changes, thus confirming that elastic demand leads to considerable changes in quantity demanded.

In contrast, other statements do not correctly represent the nature of elastic demand. Minimal reaction to price changes suggests inelastic demand, where quantity demanded remains largely unchanged despite price changes. Proportional response implies unitary elasticity, where changes in price lead to equivalent changes in quantity demanded, which is not necessarily true for elastic demand. Infinite responsiveness suggests perfectly elastic demand, characterized by an extreme case where any price change results in an infinite change in quantity demanded, which does not accurately reflect typical elastic demand instances.