elasticity (redirected from Hooke's law)

Elasticity

A measure of sensitivity of one variable to another. More specifically, the degree to which consumers respond to price changes.

Notes:

A value greater than 1 = a good sensitive to price
A value less than 1 = insensitive to price

See also: Economics

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elasticity

The responsiveness of the quantity purchased of an item to changes in the item's price. If the quantity purchased changes proportionately more than the price, the demand is elastic. If the quantity purchased changes proportionately less than the price, the demand is inelastic. For example, price increases by cigarette manufacturers have a relatively small effect on cigarette consumption, thus, the demand for cigarettes is inelastic.