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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 ?
This best-selling canvas slipper is fully elasticized, and designed for excellent adherence to the foot.
This fully elasticized shoe hugs the foot, contouring the arch and toes, and now comes in two new colors: caramel and suntan.
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Strips of this elasticized silicone tape are built into the garments and strategically placed in specific patterns over the active muscles.
These delightful garments are both amusing and practical, made of rugged waterproof vinyl with snap closings and an elasticized hood to fit snugly around the head and prevent water from running down the child's neck.
#SD-16, $19.60 Features: A fully elasticized canvas shoe with elastic binding instead of drawstring.
The application of Caipo Filopiu guarantees perfect coverage with any kind of elastomer for the production of elasticized yarns, and the insertion of any kind of rigid thread (including metallic) for the production of high performance technical yarns.
With Sincro M machine, it is possible to produce FAPP low density packages (Fadis Precision Package) and hanks, which allow for wide retraction margins of the yarn during the dyeing phase, thus keeping a high residual elasticity percentage of the elasticized yarn.
The dancers crisscross the stage stretching and pulling elasticized bands, secured offstage, into a cat's cradle of possibilities, and!
Cover the entire hairdo with an elasticized hairnet, tightening the net to make a neat and almost invisible covering.