Question

what is elasticity?

Answer 1

Elasticity refers to the responsiveness of a variable due to a change in another variable. For example, the price elasticity of demand refers to the responsiveness of quantity demanded in response to a change in price. In other words, the price elasticity of demand indicates how consumers adjust their quantity demanded in response to a price change. Price elasticity of demand is measured using the following formula:

Price elasticity of demand = % change in demand / % change in price