1. In Economics, this is the measure of responsiveness to an increase or decrease in its price or capability of a good or service to demand and supply of a good or service. 2. In Engineering, it is the ability to recover to original dimensions, to original shape, following a situation of applied pressure and stress o a material. See also Hooke’s law. 3. In Statistics, it is the amount of response or change one variable has in relationship to another. To what degree does a dependent variable, such as spending, change when an independent, but associated variable, such as income, changes.

More On This Topic

Link to This Definition
Did you find this definition of ELASTICITY helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary