Responsive sites are capable of interacting with the device as well, for example, screen rotation on phones with gyroscopes. Images and text need to be able to resize, and grids for elements on the page also need to be flexible in order to adapt to the screen. Along with all this functionality, Google claims that SEO is benefited by this feature because it makes the sites more available to people everywhere.
For more information on just what responsive design is and more links to learn how it is achieved, check out http://johnpolacek.github.io/scrolldeck.js/decks/responsive/
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