Definition of elasticity
2 : the responsiveness of a dependent economic variable to changes in influencing factors elasticity of demand price elasticity
Recent Examples of elasticity from the Web
This process will help the dough achieve a better elasticity and avoid crumbling.
Replenishing lost keratin restores the hair's strength and elasticity, giving it a more healthy appearance, the company says.
As collagen degrades, our skin loses its elasticity and smoothness, leading to wrinkles.
SkinClinical uses a collagen- and elasticity-boosting (and patented!) formula called SBD-4 that boosts the skin’s microcirculation, which in turn fights and reverses signs of aging and environmental wear.
Damage can strip away elasticity, increasing stiffness and recent research suggests something extremely important.
G&G’s costly gamble may turn out to be a fascinating experiment of the elasticity of Miami’s real estate market — as well as a test of the global following of the Aston Martin brand.
The elasticity of language, the silliness and sappiness, felt very much like the expression of the twins.
Although tempos were steady, there was little rhythmic elasticity.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'elasticity.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of elasticity
Financial Definition of ELASTICITY
What It Is
Elasticity is a measure of how much the quantity demanded of a service/good changes in relation to its price, income or supply.
How It Works
If the quantity demanded changes a lot when prices change a little, a product is said to be elastic. This often is the case for products or services for which there are many alternatives, or for which consumers are relatively price sensitive. For example, if the price of Cola A doubles, the quantity demanded for Cola A will fall when consumers switch to less-expensive Cola B.
When there is a small change in demand when prices change a lot, the product is said to be inelastic. The most famous example of relatively inelastic demand is that for gasoline. As the price of gasoline increases, the quantity demanded doesn't decrease all that much. This is because there are very few good substitutes for gasoline and consumers are still willing to buy it even at relatively high prices.
Why It Matters
Elasticity is important because it describes the fundamental relationship between the price of a good and the demand for that good.
Elastic goods and services generally have plenty of substitutes. As an elastic service/good's price increases, the quantity demanded of that good can drop fast. Example of elastic goods and services include furniture, motor vehicles, instrument engineering products, professional services, and transportation services.
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To learn more about specific types of elasticity, see the following:
Income Elasticity of Demand: the responsiveness of quantity demanded to a change in income.
Price Elasticity of Demand (PED): the responsiveness of quantity demanded to a change in price.
Elasticity of Supply: the responsiveness of the quantity supplied to a change in price.
ELASTICITY Defined for Kids
Definition of elasticity for Students
: the quality or state of being easily stretched
Seen and Heard
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