- A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which individuals (consumers/producers) change their demand/amount supplied in response to price or income changes.
Elasticity is used to assess the change in consumer demand as a result of a change in the good's price. When the value is greater than 1, this suggests that the demand for the good/service is affected by the price, whereas a value that is less than 1 suggest that the demand is insensitive to price.
Businesses often strive to sell/market products or services that are or seem inelastic in demand because doing so can mean that few customers will be lost as a result of price increases.
Investment dictionary. Academic. 2012.
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Elasticity — may refer to:*Elasticity (physics), continuum mechanics of bodies which deform reversibly under stressVarious uses are derived from this physical sense of the term, especially in economics:*Elasticity (economics), a general term for a ratio of… … Wikipedia
Elasticity — E las*tic i*ty ([=e] l[a^]s*t[i^]s [i^]*t[y^]), n. [Cf. F. [ e]lasticit[ e].] 1. The quality of being elastic; the inherent property in bodies by which they recover their former figure or dimensions, after the removal of external pressure or… … The Collaborative International Dictionary of English
Elasticity — Elasticity. См. Упругость. (Источник: «Металлы и сплавы. Справочник.» Под редакцией Ю.П. Солнцева; НПО Профессионал , НПО Мир и семья ; Санкт Петербург, 2003 г.) … Словарь металлургических терминов
elasticity — 1660s; see ELASTIC (Cf. elastic) + ITY (Cf. ity) … Etymology dictionary
elasticity — [n] stretchiness adaptability, adjustability, flexibility, fluidity, give*, malleability, plasticity, pliancy, resilience, rubberiness, springiness, suppleness; concept 731 Ant. rigidity … New thesaurus
elasticity — [ē΄las tis′ə tē, i las΄tis′ə tē] n. pl. elasticities 1. the quality or condition of being elastic; specif., a) springiness; flexibility; resilience b) buoyancy of spirit c) adaptability 2. Econ. the degree to which the demand for, or supply of,… … English World dictionary
elasticity — /i la stis i tee, ee la stis /, n. 1. the state or quality of being elastic. 2. flexibility; resilience; adaptability: a statement with a great elasticity of meaning. 3. buoyancy; ability to resist or overcome depression. 4. Physics. the property … Universalium
Elasticity — (Roget s Thesaurus) < N PARAG:Elasticity >N GRP: N 1 Sgm: N 1 elasticity elasticity springiness spring resilience renitency buoyancy GRP: N 2 Sgm: N 2 rubber rubber India =>(n) rubber latex … English dictionary for students
elasticity — [[t]i͟ːlæstɪ̱sɪti, ɪlæ̱st [/t]] elasticities 1) N UNCOUNT The elasticity of a material or substance is its ability to return to its original shape, size, and condition after it has been stretched. Daily facial exercises help her to retain the… … English dictionary
elasticity — A term used to describe the effects price, supply, and demand have on one another for a particular commodity. A commodity is said to have elastic demand when a price change affects the demand for that commodity; it has supply elasticity when a… … Financial and business terms