What Does Elasticity Mean?

In economics, elasticity measures the percentage change of one economic variable in response to a change in another. If a good's price elasticity of demand is -2, a 10% increase in price causes the quantity demanded to fall 20%.

What is elasticity and example?

Most commonly, elasticity refers to an economic gauge that measures the change in the quantity demanded for a good or service in relation to price movements of that good or service. For example, when demand is elastic, its price has a huge impact on its demand. Housing is an example of a good with elastic demand.

What is the best definition of elasticity?

1 : the quality or state of being elastic: such as. a : the capability of a strained body to recover its size and shape after deformation : springiness. b : resilience sense 2. c : the quality of being adaptable.