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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 ?
Caption: Figure 5: The orthodontic elastic band found.
Very few studies have used the OMNI perceived exertion scale for resistance exercise (OMNI-RES) (Robertson et al., 2003; 2005b) while carrying out physical conditioning programs with different kinds of materials for strength training (i.e., weight machines; elastic bands and tubing; aquatic devices that increase drag force) (Colado et al., 2009; 2010; 2012a; Colado and Triplett, 2008).
Everything has gone right with his preparation and he is wound up like an elastic band."
When I was growing up, it was all Rubik's cubes and My Little Ponies, today it is tiny coloured elastic bands.
5 The mum who made police interrogate a 12-year-old for flicking an elastic band at her son.
As part of a worldwide diabetes awareness campaign, Millie has asked everyone at he r school to wear an elastic band around their wrist tomorrow and to "ping" it each time they eat or drink any foodstuffs containing carbohydrates.
To ensure your flag doesn't fly off, sew a few stitches as close as you can to the rod or an elastic band wrapped at the bottom or top of the flag.
But as my mother used to say "he must think he has an elastic band on his cash".
Royal Mail would not give a clear explanation for the huge rise in elastic band spending.
Raffia-tied rose and herb arrangement would suit a country-style interior; STEP 1 Fill vase with water.; STEP 2 Place elastic band around the middle.; STEP 3 Cut rosemary to size and tuck behind elastic band.; STEP 4 Tie raffia around the herbs then cut away elastic.; STEP 5 Create dome-shaped rose posy.; STEP 5 Cut stems to length and place into vase
During operation, the most relaxed elastic band is opposite the cam.