What is elesticity?

Elasticity is a measure of how responsive a variable is to changes in another variable. In economics, it often refers to the responsiveness of demand or supply to changes in price, income, or other factors. A high elasticity indicates that a small change in one variable leads to a significant change in another, while low elasticity suggests that changes have little impact. Elasticity can help businesses and policymakers understand consumer behavior and make informed decisions.