In economics, this most frequently refers to demand elasticity, or how demand fluctuates based on changes in other factors, such as price, income, and more. The opposite of elasticity is inelasticity.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics 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 ...

Demand is usually elastic for goods that do not fulfil basic needs and that we can live without – precisely like ice-cream. Demand is inelastic if the quantity demanded by consumers given a price ...

Elasticity of supply figures range from zero to infinity. However, it is possible for the results to be a negative number. Negative elasticities of supply figures result in an inelastic ...

Elasticity is especially important for investors. A company that specializes in inelastic products will likely be a relatively steady investment, regardless of economic conditions.

In economics, the demand for a certain good or service is represented by the demand curve. The demand curve is plotted on a graph with price labeled on the y-axis and quantity labeled on the x-axis.

Demand for toothpicks tends to be inelastic because they are cheap and bought infrequently, while that for meat is more elastic. The fraction-of-total-cost issue comes up in restaurant meals.

University of Chicago Press Journals. "How Elasticity Affects The Market For Illegal Goods." ScienceDaily. ScienceDaily, 12 January 2006. <www.sciencedaily.com / releases / 2006 / 01 ...

It’s called inelastic pricing and in the third part of this series, Liam looks at this strategy as well as the concept of complementarities.. You can watch Liam explain the video.