Economics - ElasticityWatch
Could anybody give me a relatively short explanation of elasticity please.
The degree to which a price change for an item results from a unit change in supply (called supply elasticity) or a unit change in demand (called demand elasticity). opposite of inelasticity.
A measure of responsiveness of one economic variable to another -- usually the responsiveness of quantity to price along a supply or demand curve -- comparing percentage changes (%D) or changes in logarithms (d ln). The arc elasticity of x with respect to y is e = %Dx/%Dy. The point elasticity is e = d lnx/d lny = (y/x)(dx/dy).
In economics, a measure of responsiveness of the quantity demanded or supplied to changes in price. Elasticity measures the degree to which price is effective in calling or holding back quantity. Small price changes do not influence demand for highly elastic commodities.