What does "elasticity" mean in economics?

Answer by  tamarawilhite (17883)

Elasticity refers to how much flexibility there is in supply or in demand. For example, demand for housing is inelastic. You can own one house, maybe two, but rarely own many. You can have 5 sweaters or 50 - the demand is very elastic and flexible.

Answer by  Jaskiano (12)

Elasticity is mainly the ratio of the change in percentage when one variable is compared to another like how the demand or supply curve reacts to prices changing.