elasticity


Also found in: Dictionary, Thesaurus, Medical, Legal, 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.

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.

elasticity

The ability of the real estate market to respond to price increases over a fairly short period of time.

References in periodicals archive ?
Since eii it represents the price elasticity of the own, price,-cross of elasticity the xpressese i a j, eij = eji and this restriction is achieved only if some elements of the main diagonal (eii a$?
The purpose of this study was to determine the effect of the addition of E-glass fiber (Chopped strands 3 mm size) with 1% and 1.5% weight concentration on the heat-polymerized acrylic resin denture base material to impact strength, transverse strength, and modulus of elasticity, and the correlation between them.
This income elasticity was estimated using annual country-level data released for the year 2016 by a global provider of disaster risk information, the Index for Risk Management (www.inform-index.org).
The LN size, elasticity values, and needle washout Tg of all the lesions are expressed as medians (25th and 75th percentile).
In the meantime, knowing that magnetism alone can predict how elasticity will respond or not respond to changes in temperature might help engineers better select or design materials for specific purposes.
As each yarn has its own elasticity and its own retraction coefficient during the dye process, this additional features benefits the customer.
To examine the combined effects of SD population structure, negotiation, and demand forms on SP's and BA's pricing strategies, the dynamic pricing processes under linear demand and constant elasticity demand are modeled, respectively.
The demand price elasticity for the short-term ([[beta].sub.0]) states that a 1% increase in price causes a drop of [[beta].sub.0]% in the number of cigarettes consumed in a quarter, while the short-term income elasticity ([[gamma].sub.0]) indicates that an increase of 1% in real income of consumers produces an increase of [[gamma].sub.0]% in the number of cigarettes consumed in a quarter.
Elasticity is important because yarns that have natural stretch are easier to work with.
As a result, any estimation of aggregate demand to arrive at measures of a representative consumer's income elasticity of demand and price-elasticity demand is essentially an empty exercise because the restrictions (values) placed on the income elasticity and price elasticity are presupposed prior to any estimation.
'Regular exercise improves muscle tone, which helps support skin and also boost elasticity,' says Dr Susan.
This book is for engineers interested in developing new methods, as well as clinicians using techniques for measurement of soft tissue elasticity in vivo.