Final answer:
Price elasticity of demand can be classified as elastic, inelastic, or unitary based on its responsiveness to changes in price.
Step-by-step explanation:
The three broad categories of price elasticity of demand are elastic, inelastic, and unitary. An elastic demand is one in which the elasticity is greater than one, indicating a high responsiveness to changes in price. In contrast, an inelastic demand is one in which the elasticity is less than one, indicating low responsiveness to price changes. Finally, a unitary demand refers to proportional responsiveness of demand to price changes.