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Elasticity of Demand

The relative stability of a security's or product's price in the face of increased or decreased demand. Elastic securities or products have prices that move as independently as possible from changes in demand. In securities, elasticity is strongly influenced by the number of shares outstanding; if a company has many shares outstanding, a large order to buy or sell them is less likely to affect the price as strongly as a similar order for a company with comparatively few shares outstanding. In other products, elasticity largely comes from whether a given product is considered a necessity or a luxury. A "necessary" product is likely to be more elastic. See also: Income Elasticity of Demand.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Of or relating to the demand for a good or service when the quantity purchased varies significantly in response to price changes in the good or service. For example, the demand for a product with many close substitutes is elastic because a small price rise will cause consumers to switch to competing brands. Compare inelastic.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


adj. relatively responsive to change.


Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Behrents, "Severe localized destruction of the periodontium secondary to subgingival displacement of an elastic band," Journal of Periodontology, vol.
The most important finding of this study was that the Thera-Band resistance scale can be used to monitor intensity when elastic bands are used.
The real issue is that buying cheap and nasty elastic bands is more expensive for the taxpayer.
DANGER: The elastic bands which hold the doll into the box pose a strangulation threat to young children.
As you head for the characteristics of those elastic bands. These characteristics are variables, things you might want to experiment with.
HOSPITAL staff have been told to root around their offices for elastic bands and return them due to shortages.
MAKE A TWIGGY PENCIL HOLDER THIS is an easy and fun idea from the Royal Horticultural Society (it will even help in the garden by tidying up all the broken or fallen twigs!) | What you'll need: A clean, empty gravy granules pot or similar; lots of small twigs; scissors; elastic bands; paper; glue; raffia or ribbon.
A BIG payday is looming for a Wrexham mother who listed a dress made from 20,000 elastic bands on eBay.
Year 2 children got to take part in activities including building a bridge out of elastic bands and sticks.
Elastic bands pull at your hair so never use them to secure a ponytail.