Price elasticity measures how much the amount of a product or service that people want changes when its price changes. This idea is important in economics because it shows how consumers respond to ...

Elasticity refers to a measure of the sensitivity of a variable in accordance with another variable’s change. This way, one can measure the change in aggregate product demand with respect to price ...

Elasticity is a method of measuring the likelihood of one economic factor affecting another, such as when the price of an item affects consumer demand or when supply affects how much something costs.

Demand elasticity is a phenomenon where demand for a specific good or service changes depending on factors such as how it is priced, whether alternatives are available or local income trends.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Point elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price at a specific point on the demand or supply curve. Point elasticity calculates the ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...