Also found in: Dictionary, Thesaurus, Medical, Acronyms, Encyclopedia, Wikipedia.

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 ?
This paper studies the plane strain problem for an infinite-length strip with a footing of width 2b and an elastic layer thickness of [H.sub.n].
The participants undertook 5 sets of 10 repetition maximum (RM) with ELASTIC and ASYM CAM exercises.
The convergence of four trends, Li says, "has opened up this elastic strain engineering field": the development of nanostructured materials, such as carbon nanotubes and Mo[S.sub.2], that are capable of retaining large amounts of elastic strain indefinitely; the development of the atomic force microscope and next-generation nanomechanical instruments, which impose force in a controlled manner; electron microscopy and synchrotron facilities, needed to directly measure the elastic strain field; and electronic-structure calculation methods for predicting the effects of elastic strain on a material's physical and chemical properties.
The mathematical model of a real gantry robot, according to Denavit-Hartenberg algorithm, in witch was added supplementary terms (terms that are expressing the elastic displacements, specific for a real robot), can be written as follows: (Nicolescu A.
Similar trends were seen with grade II sprains, although secondary outcomes were significantly better with the elastic wrap than with casting.
PTS was less frequent in the people who wore elastic stockings for 24 months than in those who only wore decompression stockings for a year.
10,265,225 Disposable Article Including at Least One Elastic Bonded Region: Kristy J.
Elastic Wideband technology now also enables support for Private LTE.
Use when attaching elastic trim that tends to easily snag.