Add Yahoo as a preferred source to see more of our stories on Google. Economists use elasticity of demand to gauge how responsive consumers are to changes in price and income, but investors can also ...

Price elasticity assesses how the quantity demanded or supplied of a product reacts to variations in its price. It is calculated by taking the percentage change in quantity demanded—or supplied—and ...

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.