[This is part of the series: The Complete Guide To Economics 101.]
What is economic elasticity?
Elasticity is the measure of how sensitive one variable is to a change in another variable.
For instance, elasticity calculates:
If the price of a hot dogs increased by X percent, by what percent would quantity demanded of hot dogs change?
Or:
If the price of hot dogs decreased by X percent, by what percent would quantity supplied of hot dogs change?
Or:
If the price of hot dogs increased by 50%, by what percent would quantity demanded of ketchup change?