Question

what is elasticity

Answer 1

Elasticity is a measure of how responsive one variable is to changes in another variable. In economics, elasticity is often used to describe how the quantity demanded or supplied of a good or service changes in response to changes in price. It is calculated as the percentage change in quantity divided by the percentage change in price. A high elasticity indicates that the quantity is very responsive to changes in price, while a low elasticity indicates that the quantity is not very responsive to price changes.