elasticity.

1. In economics, the proportional responsiveness of one quantity to a change in another.

2. The capacity of a material to recover its shape after being stretched or deformed.

3. The flexibility of an arrangement or system to adjust to changing circumstances.

Use it for

Words that belong together

• price elasticity of demand
• income elasticity
• estimate an elasticity

On the page

The tax estimate depends on the price elasticity of demand for fuel.

Luxury purchases may have a higher income elasticity than basic necessities.

Repeated strain reduced the elasticity of the material.

Usage notes

Primary category: academic. Economic elasticity usually compares percentage changes, not raw amounts. State which variables are related; price elasticity of demand is not the only type. Singular: elasticity; plural: elasticities. Derived family (not inflections): elastic, inelastic.