In general, the percentage change in one variable for a percentage change in another variable. A measure of how sensitive one variable is to a change in the value of another variable.

Elastic: when elasticity > 1

Inelastic: when elasticity < 1

Perfectly elastic: when elasticity = ∞

Perfectly inelastic: when elasticity = 0

Unitary elastic: when elasticity = 1

See also: Own-price Elasticity of Demand.

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