Elastic

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Updated: Aug 20, 2021

A variable whose elasticity with respect to another variable has absolute value greater than 1. If demand is price-elastic the proportional fall in quantity is larger than the proportional rise in price. If supply is price-elastic, an increase in price increases supply more than in proportion.

Reference: Oxford Press Dictonary of Economics, 5th edt.



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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.