[This is part of the series: The Complete Guide To Economics 101.]
What does it mean to say that supply or demand is elastic?
When supply or demand is Elastic, it means that quantity supplied or quantity demanded is more sensitive to changes in price.
For instance, if there is a 10% increase in the price of nuts, and quantity demanded for nuts decreases by more than 10%, demand for nuts is said to be “elastic.”
This is obviously different than being inelastic, or unit elastic.