Final answer:
The elasticity of demand indicates how responsive the quantity demanded is to price changes. In an elastic range, % change in quantity demanded is greater than % change in price. In the inelastic range, it's less, and in unitary elasticity, they are equal.
Step-by-step explanation:
When evaluating the responsiveness of quantity demanded to price changes, we consider price elasticity of demand, which can be categorized as elastic, inelastic, or unitary. In the elastic range of the demand curve, the absolute value of the price elasticity of demand is greater than one, indicating that the percent change in quantity demanded is greater than the percent change in price. Conversely, in the inelastic range, the absolute value of the price elasticity of demand is less than one, meaning the percent change in quantity demanded is less than the percent change in price.
When the elasticity is exactly one, referred to as unitary elasticity, the percent change in quantity demanded equals the percent change in price. In summary, for the student's question: a) % change in quantity demanded > % change in price corresponds to an elastic demand. b) % change in quantity demanded < % change in price corresponds to an inelastic demand. c) % change in quantity demanded = % change in price corresponds to a unitary elastic demand.