Elastic

What does elastic mean?

Elastic is an economic term relating to the dynamics of supply and demand.

Whenever a 1 percent change in price causes more than a 1 percent change in quantity supplied or demanded, the elasticity calculation will result in a number greater than 1.

When this occurs, we say that the supply or demand is elastic.

In this case, the quantity demanded or supplied is very sensitive to price.

Elastic is the opposite of inelastic.