Question

what is the concept of elasticity and the theory behind it?

Answer 1

Elasticity is a measure of a variable’s sensitivity to a change in other variable. In economics, elasticity usually refers to the degree to which consumers, producers or individuals change their demand or the quantity supplied due to changes in price or the income. The major application of elasticity is to see the change in the consumer demand as a result of the change in either the price or the income.

The property of solid objects to distort under the implementation of an external force and also to get back to its original shape after the force is removed is referred to as elasticity. This is the theory behind elasticity.