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 Knight
Editor of Education
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.