Option 1 -> This describes inelastic demand where price and total expenditure move together.
Option 2 -> This describes elastic demand where price and total expenditure move in opposite directions.
Option 3 -> This describes unit elastic demand where total expenditure remains constant.
Option 4 -> This relates to income elasticity, not price elasticity.
Hence, Option 2 -> When demand is highly price elastic (|Ed| > 1), price and total expenditure move in opposite directions. If price increases, quantity demanded falls proportionally more, causing total expenditure to decrease. If price decreases, quantity demanded rises proportionally more, causing total expenditure to increase. This inverse relationship between price and total expenditure is the characteristic feature of elastic demand. -> correct