elasticity
how well something can stretch and go back to its shape
The ability of a material or object to stretch, bend, or be compressed and then return to its original shape.
the ability to change easily when needed
The quality of being flexible and able to change or adapt when circumstances change.
the ability to feel okay again after problems
The ability to return to a normal state after stress, shock, or difficulty; resilience.
in economics, how strongly something changes when something else changes
In economics, a measure of how much one variable (such as demand) changes in response to a change in another variable (such as price or income).
- Base: elasticity
- Plural: elasticities, elasticity
cross-price elasticity of demand
1demand response to another price
how demand for one thing changes when another price changes
- The cross-price elasticity of demand between tea and coffee was positive, suggesting they are substitutes.
- Researchers estimated the cross-price elasticity of demand to see how riders switch between services.
- A negative cross-price elasticity of demand can indicate complementary products.
elasticity of demand
1demand response to price changes
how much demand changes when price changes
- The elasticity of demand for gasoline is relatively low in the short term.
- They calculated the elasticity of demand for streaming subscriptions.
- A high elasticity of demand means buyers react strongly to price changes.
- The elasticity of demand is high for luxury goods.
elasticity of supply
1supply response to price changes
how much supply changes when price changes
- In agriculture, the elasticity of supply can be low during a single growing season.
- The study compares the elasticity of supply across different industries.
- High elasticity of supply means producers can increase output quickly when prices rise.
- The elasticity of supply is low for housing in big cities.
income elasticity of demand
1demand response to income changes
how demand changes when income changes
- Luxury goods typically have a high income elasticity of demand.
- They used survey data to estimate the income elasticity of demand for dining out.
- A negative income elasticity of demand can indicate an inferior good.
price elasticity of demand
1demand response to price changes
how much demand changes when the price changes
- The price elasticity of demand was estimated using last year’s sales data.
- Discount retailers often rely on products with high price elasticity of demand.
- If the price elasticity of demand is low, raising prices may not reduce sales much.
- We learned price elasticity of demand today.