1. Economics is the social science that studies the
production, distribution, and consumption of goods and
services
In economics, elasticity is the ratio of the percent change
in one variable to the percent change in another variable.
It is a tool for measuring the responsiveness of a function
to changes in parameters in a relative way. Commonly
analyzed are elasticity of substitution, price and wealth.
Elasticity is a popular tool among empiricists because it is
independent of units and thus simplifies data analysis.
An "elastic" good is one whose price elasticity of demand
has a magnitude greater than one. Similarly, "unit
elastic" and "inelastic" describe goods with price
elasticity having a magnitude of one and less than one
respectively.
1. The definition of the price of the elasticity of demand is
the measure of the responsiveness of quantity demanded
to a charge in price, with all other factors held constant.