Final answer:
An elastic demand is characterized by a price elasticity of demand greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price.
Step-by-step explanation:
An elastic demand is characterized by a price elasticity of demand greater than one. This means that the quantity demanded is highly responsive to changes in price. When the elasticity of demand is greater than one, it indicates that the quantity demanded or supplied changes more than proportionately to changes in price.