1.

Elasticity is a measurement of a variable's responsiveness to changes in other variables; most

frequently, this responsiveness is measured by the change in quantity required in response to
changes in other variables. Economic factors such as price, income, and demand are causally
associated, according to basic demand and supply analysis. Elasticity could provide significant
details about a relationship's relative strength.

2. Elastic vs Inelastic -The percentage of change is the differential between elasticity and
inelasticity of demand. Elastic demand occurs when demand varies more than the change in
value or income. Inelastic demand exists when demand changes less than the change in value or
income. A service or product has relatively elastic demand when quantity demanded by the
same amount as price or revenue.

3. Price Elasticity of demand - The price elasticity of demand is calculated by dividing the
percentage change in the amount demanded by the percentage change in price. The price
elasticity of supply is calculated by dividing the percentage change in quantity supplied by the
price change.

4. Income Elastic of demand - The response of demand for a certain good to shifts in consumer
income is measured by income elasticity of demand. The higher the financial elasticity of
demand for a particular good, the more its demand is influenced by changes in consumer
income. Businesses, for example, frequently assess the income elasticity of demand for their
items in order to forecast the effect of a business cycle on sales revenue.