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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.


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.


adj. relatively responsive to change.


References in periodicals archive ?
This best-selling canvas slipper is fully elasticized, and designed for excellent adherence to the foot.
Fadis has presented two machine models (eco-sustainable machines) with leading innovations for the processing of elasticized yarns and covering of elastomer yarns.
The sleek athletic cut is designed to move with a woman's body as she shoots, and the shirt includes an elasticized back pocket to hold various items without interfering with the shot.
Babymers Tool Bag Camouflage style ($98) offers 10 outside pockets, two insulated bottle pockets, six internal elasticized pockets, and measures 13" x 17.
The wearer puts it on using an elasticized headband or a clip.
The clothing is made for comfort (most skirts, pants and shorts come with elasticized waistbands).
Sure Fit has a product that addresses all three problems: a new elasticized slipcover which is easy to put on, stays in place and has some shape to it.
750 m/min, it is possible to produce FAPP(tm) low density packages (FAdis Precision Package), which allow for wide retraction margins of the yarn during the dyeing phase, thus keeping a high residual elasticity percentage of the elasticized yarn.
This slipper features breathable stretch lining, flattened elongated pleats and an elasticized center seam that hugs the arch.
The TNT OPS Tactical Pant has an elasticized and padded waistband for increased comfort when wearing a fully loaded duty or tactical belt.
4" laptop and secures with an elasticized Velcro tab closure.